Diving crude prices seemed to undercut corn futures Wednesday. The U.S. dollar bounced overnight, while energy prices dropped, thereby getting corn futures off to a weak start this morning. The dollar rose farther by midmorning, while the EIA report looked bearish across the board for the energy sector and crude losses accelerated. Huge ethanol stocks almost surely weighed on corn futures as well. March corn sank 2.25 cents to $3.835/bushel in late Wednesday action, while July slid 2.0 to $3.99.
The soy complex gave back a big portion of Tuesday’s gains. Little fresh soy sector news emerged today, which seemingly rendered the bean and product markets vulnerable to a setback from Tuesday’s highs. Good South American weather and the bearish EIA data (and crude oil plunge) likely weighed on beans and oil, with meal following lower in late trading. market seems unable to escape the generally selling. March soybean futures dove 15.0 cents to $9.72/bushel at their Wednesday settlement, while March soyoil dipped 0.21 cents to 30.59 cents/pound, and March meal declined $7.9 to $332.7/ton.
Wheat markets turned lower Wednesday afternoon. Wheat futures joined the bullish stampede Tuesday and continued rising last night. Sizeable purchase tenders from Egypt, Saudi Arabia, Iraq, Jordan and others apparently sparked fresh optimism about the strength of underlying demand. Still, U.S. dollar gains and huge energy losses seemed to drag futures lower as the session ended. March CBOT wheat closed 2.75 cents lower at $5.11/bushel Wednesday, while March KC wheat slumped 6.75 to $5.5275/bushel, and March MWE wheat dropped 10.0 to $5.66.
Cattle futures accelerated downward as the day passed. Strong beef gains seemed to reverse recent CME cattle losses Tuesday morning, but subsequent losses have likely encouraged bears. The cattle/beef situation still seems relatively tight, but ideas that the West Coast port strike has largely halted meat shipments to Asia seemed to depress the whole livestock complex. April live cattle futures tumbled 1.92 cents to 148.65 cents/pound in late Wednesday trading, while August cattle lost 1.62 cents to 140.35 cents/pound. Meanwhile, March feeder cattle futures plunged 2.77 cents to 196.72 cents/pound and May feeders plummeted 2.82 to 197.62.
Weight news likely exaggerated Wednesday’s hog losses. Tuesday’s pork weakness probably caused today’s weak CME opening. Bullish hopes also took a hit from the weekly Iowa-Southern Minnesota cash report, since it indicated a contra-seasonal rise in hog weights, thereby implying surprisingly large hog supplies. Talk of halted Asian exports may have depressed prices as well. April hog futures fell 2.75 cents to 68.12 cents/pound as the Wednesday’s CME close, while June hogs crashed the 3.00-cent daily limit to 79.62.