The grain markets remained strong despite Wednesday morning soy losses. It has certainly seemed as if corn and wheat were recently tracking soaring soy markets, but grain quotes remained quite elevated despite the morning soy reversal. Wire service sources cited fund activity and technical action for the sustained corn strength. December corn futures rallied 5.25 cents to $3.79/bushel late Wednesday morning, while May ran up 4.5 to $4.00.
The soy complex was hit by active profit-taking. Although the spot bean and meal markets apparently remain quite tight, CBOT futures were reportedly hit by active profit-taking and technical selling this morning, and suffered sharp reversals as a consequence. More may occur if bulls can’t regain the upper hand pretty quickly. January soybean futures fell 11.0 cents to $10.53/bushel around midsession Wednesday, while December soyoil sagged 0.26 cents to 32.61 cents/pound, and December meal tumbled $6.5 to $394.1/ton.
Weather concerns are apparently supporting the wheat markets. Given the bearish global wheat situation, a golden grain decline in concert with beans would not have been very surprising. However, traders apparently worry that the current cold snap will seriously diminish the SRW wheat crop next year. Thus, prices are proving surprisingly strong today. December CBOT wheat leapt 18.0 cents to $5.4325/bushel in late Wednesday morning action, while December KC wheat soared 20.5 cents to $5.99/bushel, and December MWE wheat jumped 15.5 to $5.8225.
Cattle futures firmed Wednesday morning. CME cattle have recently struggled despite supportive fundamental and seasonal factors. However, the nearby contracts held above short-term moving average support early this week, thereby suggesting the recent Chicago decline has run its course. As usual, much depends upon the outcome of late-week cash trading. December live cattle futures rallied 0.52 cents to 167.77 cents/pound just before lunchtime Wednesday, while April futures advanced 0.57 to 168.07. Meanwhile, January feeder cattle futures gained 0.55 cents to 233.20 cents/pound, and March feeders added 0.70 to 231.25.
Talk of firming spot markets still seems to be supporting CME hogs. Cash hog prices were called steady Wednesday morning, but pork cutouts apparently rose modestly before noon. The market continues acting as if a short-term, across-the-board advance is in the offing. December hog futures rose 0.20 cents to 90.10 late Wednesday morning, while April hogs climbed 0.57 to 91.57.
Cotton is following beans lower. Financial market weakness seemed to undercut cotton futures Tuesday night, but subsequent losses were probably exaggerated by selling spilling over from the soy complex reversal. The fact that the global cotton situation looks rather ugly very likely encouraged bears as well. December cotton futures dropped 0.84 cents to 62.46 cents/pound shortly before noon (EST) Wednesday, while March futures slumped 0.52 cents to 61.01.