Corn futures closed solidly higher on Wednesday with the spot month contract rallying to the highest level in 28 months. The market was supported by hot and dry weather in Argentina that is threatening corn production prospects. USDA reported the sale of 116,000 tonnes of corn to an “unknown destination”, which often proves to be China. March ended 6 3/4 cents higher at $6.09 and May was 6 3/4 cents higher at $6.17.
Soybean futures were higher on Wednesday. The nearby contract hit the highest level in 5 1/2 weeks on spillover support from corn and wheat. In addition, a strike at Argentine crushing plants could eventually slow export shipments of soybean oil from the world’s largest exporter. Hot and dry weather is a concern for the soybean crop in Argentina, although most favorable weather is being reported in Brazil. January was 2 1/2 cents higher at $13.28 3/4 and March was 2 1/4 cents higher at $13.39 3/4.
Wheat futures traded sharply higher on Wednesday. The CBOT rallied to the highest level since early August as the nearby contract pushed above technical resistance. Trade volume was thin, but support came from reports of 250,000 tonnes of wheat sales from the U.S. and Australia to Iraq. CBOT March closed 18 1/2 cents higher at $7.83 1/2, KCBT March was 18 cents higher at $8.44 1/2 and MGE March ended 12 cents higher at $8.69 3/4.
Cattle futures rallied strongly on Wednesday. Reports of firm cash trade and spillover buying from the sharp rally in hogs helped push cattle futures higher. Cash cattle trade was reported at $102 in Kansas and at $104 in Texas. December closed $1.28 higher at $104.13 and February was $1.75 higher at $107.55.
Lean hog futures closed sharply higher on Wednesday. Strength in the cash market and some optimism that China will be importing more U.S. pork pushed prices higher. There is optimism that tightening hog supplies going into January will help support the cash market moving forward. February ended $2.90 higher at $78.88 and April was $2.50 higher at $82.90.