Corn remained firm Wednesday morning. The USDA Grain Stocks and Prospective Plantings reports sent corn prices tumbling Tuesday, but the market firmed overnight. Prices rose a bit more as the morning progressed, particularly after the weekly EIA energy report stated domestic ethanol stocks at their lowest level since early January. May corn futures bounced 3.75 cents to $3.90/bushel late Wednesday morning, while December edged 3.75 higher to $4.045.
The soy complex is building on Tuesday’s post-report gains. The USDA reports were interpreted as moderately bullish for the soybean and product markets, although concurrent crude and palm oil losses weighed on soyoil futures. The actual size of those gains seemed rather modest, which may explain the belated bullish soybean response seen this morning. The bullish energy complex reaction to the EIA data is probably boosting soyoil as well. May soybean futures jumped 15.75 cents to $9.89/bushel around midsession Wednesday, while May soyoil leapt 0.63 cents 30.97 cents/pound, and May meal rose $3.4 to $330.2/ton.
The wheat markets are rebounding from Tuesday’s dive. Wheat futures’ reaction to Tuesday’s USDA reports was most surprising, since prices dropped on what was generally seen as supportive news. Traders cited spillover selling from the corn market for much of the weakness. Given those losses, it isn’t terribly surprising to see the wheat markets staging a substantial recovery today. May CBOT wheat surged 16.0 cents to $5.2775/bushel as the lunch hour loomed Wednesday, while May KC wheat climbed 15.0 cents to $5.7425/bushel, and May MWE wheat rallied 13.0 to $5.89.
Cattle futures couldn’t sustain big early gains. Last Friday’s cash cattle strength was followed by a big jump in Monday afternoon beef quotes. The latter news almost surely powered today’s early CME gains. However, futures again proved surprisingly weak, with all 2015 contracts having fallen below unchanged levels by late morning. Traders apparently expect sizeable seasonal losses in the wake of an early-spring peak. June cattle futures fell 0.50 cents to 151.82 cents/pound in late Wednesday morning action, while August cattle tumbled 0.67 to 148.82 cents/pound. Meanwhile, May feeder cattle futures sank 0.40 cents to 216.50 cents/pound, and August feeders dropped 0.60 to 217.67.
CME hogs continue trading firmly. Recent news from the cash hog and wholesale pork markets has proven generally mixed, with few sizeable shifts in one direction or the other. However, after having suffered omnipresent losses since last summer, deeply depressed hog futures have refused to keep dropping lately. Traders are very likely anticipating a big seasonal rally during the second quarter. June hog futures crept up 0.35 cents to 76.15 cents/pound just before lunchtime Wednesday, while December advanced 0.65 to 69.80.