Crop futures continued sliding Wednesday. Talk of weak demand and rising yield prospects as spring planting accelerates again weighed upon corn futures today. The weekly EIA energy sector report also depressed the ethanol market, thereby spurring additional corn sales. May corn futures slipped 0.5 cent to $3.725/bushel at their Wednesday settlement, while December stalled at $3.975.
Beans also led the soy complex downward. As in the corn pit, ideas about sagging demand and surging corn plantings, and an early switch to soybeans, appeared to weigh rather heavily upon bean futures this morning. Overnight meal support dwindled, while selling spilling over from the crude and palm markets undercut soyoil. The losses diminished in late trading. May soybean futures fell 4.75 cents to $9.705/bushel as closing bell rang Wednesday, while May soyoil dropped 0.26 cents to 31.56 cents/pound, and May meal skidded $0.3 to $315.5/ton.
The wheat markets turned lower. Talk of short-term dryness and diminished winter wheat yields has supported wheat futures lately, but the various contracts ran out of upward momentum today. Improved short-term rainfall prospects may have triggered some selling, with technical resistance around the 10-day moving average on the May Chicago chart likely exaggerating the response. May CBOT wheat futures closed 2.0 cents lower at $4.9875/bushel Wednesday, while May KC wheat dipped 1.75 cents to $5.12/bushel, and May MWE wheat sank 1.5 to $5.4375.
Cattle futures stabilized after posting early losses. Cattle futures attempted to follow-through upon Monday’s big breakdown in early Wednesday action, but prices recovered from morning lows. The bounce probably reflected industry talk of wholesale strength, but technicians still seem to be looking toward lower levels. June cattle futures ended Wednesday having tumbled 0.70 cents to 146.02 cents/pound, while August cattle slumped 0.60 to 144.85. Meanwhile, May feeder cattle futures declined 0.22 cents to 206.75 cents/pound and August stumbled 0.17 lower to 208.45.
Lost spot market momentum weighed on CME hogs. The hog market performed rather well after spot quotes seemed to bottom in early April. But the cash and wholesale rallies have clearly slowed this week, thereby enabling technical bears to force nearby futures back under major moving average resistance Wednesday. June hog futures plunged 1.65 cents to 75.95 cents/pound as the CME pit session ended Wednesday, while December dove 1.35 to 67.02.