Corn futures were down sharply on Wednesday. The corn market was led lower by weakness in the wheat market. There appears to be some speculative selling related to profit taking/liquidation in anticipation of the index fund rebalancing slated for next week. March settled 19 3/4 cents lower at $3.70 1/2 while December 07 was 12 3/4 cents lower at $3.62.



Soybean futures opened lower on Wednesday and extended losses throughout the session. Fund selling and spillover weakness from corn and wheat pressured prices. In addition, weather conditions remain generally favorable in South America for their soybean crop with recent rain reported in Brazil and Argentina. March ended 15 1/4 cents lower at $6.82 and November fell 13 3/4 cents to $7.26 1/4.



Wheat futures were sharply lower on Wednesday. The market fell through chart support at the December lows as the March contracts fell to the lowest levels in about 3 months. Heavy snow and rain in the Plains late last week and into the weekend weighed heavily on the market. CBOT Mar was down 24 1/2 cents at $4.76 1/2. KCBT Mar was 23 cents lower at $4.86 3/4 while MGE Mar fell 23 cents to close at $4.95 1/2.



Cattle futures ended higher on Wednesday. The market gapped higher to set new contract highs on the February and April contracts. The winter storm that hit the Plains late last week is the dominant market factor. Feedlots are digging out from the snow, clearing mud, and simply trying to get cattle fed. February was 60 points higher at $93.10. The April contract was 50 points higher at $94.27. January feeder cattle closed up 25 points at $99.85.



Lean hog futures closed sharply lower on Wednesday. Cash market declines on Tuesday and today weighed heavily on futures. Once prices started lower, the market hit sell stops and falling prices encouraged funds to able out. The trend is decidedly down and there are few signs a correction is near. February fell $2.20 and closed at $59.50. June finished down $1.20 at $72.25.