Wednesday morning events undercut corn futures. The weekly EIA report indicated slow ethanol production last week, which implied a commensurate drop in corn demand. In addition, the U.S. dollar reversed early losses by late morning, thereby seeming to exert pressure on the whole commodity sector. May corn futures sank 4.75 cents to $3.7825/bushel around midsession Wednesday, while December lost 4.5 to $4.0325.

The soy complex proved mixed at midday Wednesday. Today’s U.S. dollar rebound and concurrent drop in the energy sector seemed to weigh on the whole soy complex this morning. News that the partial blockage of Brazil’s port of Santos will probably end tonight may be providing support. Bearish potential may also be diminished by optimism about the likely result of Thursday’s looming USDA WASDE report. May soybean futures gained 1.0 cent to $9.72/bushel shortly before lunchtime Wednesday, while May soyoil slumped 0.08 cents to 30.95 cents/pound, and May meal inched $0.2 lower to $319.5/ton.

The wheat markets posted modest morning losses. Wheat futures have fluctuated around unchanged levels this morning, with the U.S. dollar rebound and talk of weekend rainfall over the southern Plains giving bears the edge. On the other hand, technical support at short-term moving averages seemed to limit the decline. May CBOT wheat slipped 1.25 cent to $5.2475/bushel late Wednesday morning, while May KC wheat slid 2.75 cents to $5.625/bushel, and May MWE wheat sagged 0.5 to $5.83.

Cattle futures are trading in mixed fashion. CME cattle traders seem caught between the current reality of robust cash and wholesale prices and the sizeable breakdown anticipated this spring and summer. Bulls need fresh spot gains to pull futures higher, whereas the implicit losses built into futures can easily be seen as overdone. June cattle futures edged 0.10 cents lower to 152.22 cents/pound as the lunch hour loomed Wednesday, while August cattle lifted 0.05 to 148.95 cents/pound. Meanwhile, May feeder cattle futures rallied 0.45 cents to 215.40 cents/pound, and August feeders climbed 0.40 to 216.70.

Hog futures are exhibited modest strength Wednesday morning. The cash and wholesale markets proved narrowly mixed Tuesday afternoon, thereby robbing hog futures of clear direction today. However, anticipation of a seasonal spring advance seems to be growing, which provided early support. June hog futures rose 0.35 cents to 76.70 cents/pound shortly before m