Corn apparently followed wheat lower Wednesday morning. Corn traders are apparently looking for leadership. That is, after following soybeans lower overnight, corn futures slid further as beans firmed and wheat turned lower. Tuesday’s technical failure is probably encouraging bears, who are probably looking for a test of the market’s late January lows. March corn futures slid 3.25 cents to $3.7425/bushel late Wednesday morning, while July lost 3.25 to $3.9025.
The soy complex rebounded from overnight lows. Brazilian officials are reportedly clearly their roads by forcing striking truckers to move and by fining them after Monday’s big disruptions. That news rather clearly depressed the bean and meal markets overnight, but futures firmed this morning. Growing talk that Brazilian production won’t meet earlier expectations may be offering support. Spillover strength from the energy markets seems to be boosting soyoil. March soybean futures slipped 3.0 cents to $10.13/bushel as the lunch hour loomed Tuesday, while March soyoil rallied 0.31 cents to 31.73 cents/pound, but March meal sank $4.5 to $352.4/ton.
The wheat markets fell despite a big Egyptian purchase. Bullish wheat traders have apparently been hoping for news of a sizeable Egyptian purchase using a $100 million line of credit from the U.S. government. Those hopes were met this morning when a 120,000-tonne purchase was reported. However, the fact that U.S. financing powered the deal seemed to blunt its impact. Futures turned decidedly lower soon after the announcement. March CBOT wheat dropped 8.0 cents to $4.9775/bushel in late Wednesday morning trading, while March KC wheat dipped 6.0 cents to $5.2975/bushel, and March MWE wheat fell 10.75 to $5.5525.
Cattle futures are reacting belatedly to beef gains. Wholesale beef prices have surged this week, thereby suggesting recent talk of reduced interest from consumers and export customers has been greatly exaggerated. That would seemingly explain the rebound from fresh 2015 lows posted by most contracts yesterday. Their large discounts to recent cash quotes also look quite large. April cattle futures jumped 1.07 cents to 146.65 cents/pound around midsession Wednesday, while August cattle advanced 1.00 cent to 139.00 cents/pound. Meanwhile, March feeder cattle futures bounced 1.00 cent to 196.60 cents/pound and May feeders vaulted 0.90 to 195.22.
Rebounding cash quotes continue supported hog futures. Resurgent cash quotes boosted hog futures Tuesday. Those gains resumed this morning in likely response to talk of continued gains today. Conversely, pork values proved surprisingly weak early this week, thereby potentially limiting CME advances. April hog futures gained 0.60 cents to 69.17 cents/pound just before lunchtime Wednesday, while June hogs lifted 0.60 to 83.57.