News of a corn sale to Mexico seems to be supporting CBOT futures. The USDA’s daily reporting system indicated that U.S. firms had sold 196,000 tonnes of corn to Mexico for delivery next year. That news seemingly offset the weather and currency driven losses suffered in overnight action. March corn futures slipped 1.25 cents to $3.80/bushel late Wednesday morning, while July slid 1.75 to $3.95.
Beans and meal are finding technical support. Benign South American forecasts are improving production prospects in Brazil and Argentina, which is rather obviously undercutting the U.S. market. The concurrent U.S. dollar advance is likely hurting as well. Current crude strength is boosting the soyoil market, which, along with technical support, is limiting bean and meal losses. January soybean futures slumped 6.0 cents to $9.8975/bushel just before lunchtime Wednesday, while January soyoil bounced 0.35 to 31.63 cents/pound, and January meal sagged $5.3 to $352.6/ton.
Having US wheat shut out of another Egyptian tender is pressuring prices. American wheat was once again shut out of the latest tender from Egypt. In addition, news that Russian officials made a huge purchase in a domestic intervention tender today also contradicted their recent statements, thereby suggesting they’re not going to slow exports in the near future. Both developments seem negative for U.S. markets. March CBOT wheat fell 11.75 cents to $5.915/bushel around midsession Wednesday, while March KC wheat tumbled 11.0 cents to $6.4125/bushel and March MWE wheat dropped 10.75 cents to $6.2175.
Cattle futures are following through on Tuesday’s losses. Tuesday’s CME breakdown did considerable damage to the live cattle charts. That probably reflected significant beef weakness on late-day reports, which in turn seemed to keep the pressure on the Chicago market today. Traders clearly worry that soaring prices will curb demand. February live cattle plunged 2.20 cents to 166.85 cents/pound in late Wednesday morning trading, and April dove 1.97 at 166.77. January feeder cattle futures plummeted 1.62 cents to 233.92 cents/pound and March feeders crashed 2.57 to 230.90.
Pork weakness continues weighing on hog futures. Although the cash hog markets showed signs of modest strength Tuesday, CME futures are very likely reacting to slumping wholesale prices instead. It’s hard to find much bullish comfort from cutout values quoted 1.75-2.0 cents/pound lower as they were Tuesday afternoon. February hog futures drooped 0.60 cents to 88.40 cents/pound late Wednesday morning, while June hogs dove 1.37 cents to 95.22.