Corn futures closed strongly lower on Wednesday. Futures were strongly higher this morning on spillover support from crude oil and the stock market. However, new-crop led the decline as extended forecasts for drier weather. More rain is in the forecast for the Midwest over the next week, but the weather pattern is then expected to turn drier. The market was also pressured by a report showing ethanol production last week fell to the lowest level in nearly seven months. May ended 16 1/4 cents lower at $7.32 3/4 and December was 20 1/2 cents lower at $6.55 1/2.
Soybean futures were solidly higher on Wednesday, although gains were trimmed late in the session on weakness in corn. The strong decline in the dollar index and strength in crude oil and the stock market helped support prices. The rally in crude oil helped push soybean oil and the soy complex. May closed 15 3/4 cents higher at $13.57 3/4 and November was 12 cents higher at $13.66.
Wheat futures traded mostly lower on Wednesday. Strong losses in corn helped turn wheat futures lower after trading higher most of the day. Underlying support continues to come from dry weather in the southern Plains that is hurting HRW production prospects and wet weather in the northern Plains that is delaying spring wheat planting. CBOT May closed 3/4 of a cent lower at $7.85, KCBT May was 6 cents lower at $9.20 and MGE May ended 4 1/4 cents lower at $9.38 3/4.
Cattle futures settled lower on Wednesday. Early fund buying was triggered by strength in the stock market and weakness in the dollar. The $2.07 jump in choice cutout prices on Wednesday was also a bullish factor. But futures turned lower once buying interest dried up as profit-taking and uncertainty about the cash market weighed on prices. Traders were also nervous about beef demand following an animal right group video showing animal cruelty. June closed 68 cents lower at $116.50 and August was 48 cents lower at $117.70.
Lean hog futures closed lower on Wednesday. Futures opened higher on outside market support. Strong losses in the dollar are bullish for pork exports and strength in the stock market is a bullish sign for domestic demand. But futures turned lower on pressure from steady to lower cash bids. There is some concern that near record high pork prices will limit demand. June fell 63 cents lower at $101.40 and July was 55 cents lower at $101.18.