Corn futures closed higher on Wednesday. Weakness in the dollar, strength in the stock market and crude oil and spillover support from soybeans are supporting corn trade. But gains are being limited by generally favorable crop weather in the Corn Belt. Seasonally warm temperatures and rainfall should help keep crop condition ratings strong. Trade was limited by positioning ahead of the USDA reports due out Thursday morning. July closed 1 cent higher at $3.38 1/4 and December was 2 cents higher at $3.58 1/2.
Soybean futures traded higher on Wednesday. Old-crop months led the gains as tight cash markets and soybean products offered support. Soybean meal rallied on limited supplies of soybeans for crush and soybean oil was supported by the rally in crude. USDA reported the sale of 240,000 tonnes of U.S. soybeans to China for 2010/11 delivery. New-crop was higher, but gains were limited by favorable weather for crop growth. July ended 12 1/2 cents higher at $9.43 1/2 and November was 2 1/4 cents higher at $8.96 1/2.
Wheat futures turned lower on Wednesday. After trading higher this morning, futures fell amid bearish supply concerns. USDA will release new Supply/Demand and Crop Production reports on Thursday morning. Despite ideas that USDA will lower its estimates for the U.S. and world wheat crops, wheat stocks are expected to remain abundant. CBOT July closed 4 1/4 cents lower at $4.28, KCBT July was 4 cents lower at $4.58 and MGE July ended 3 1/4 cents lower at $4.86 1/4.
Cattle futures settled mostly lower on Wednesday. Further weakness in beef prices and expectations for lower cash cattle trade this week pressured futures trade. Choice cutouts were down 98 cents at midday, hitting the lowest level since March 19. Losses were limited by strength in the stock market and weakness in the dollar. June closed 30 cents lower at $89.65 and August ended 35 cents lower at $87.48.
Lean hog futures closed mostly higher on Wednesday. Deferred contracts were supported by short-covering from technically oversold levels. The outlook for tightening hog numbers was also a bullish factor. But the June contract slipped lower amid recent losses in pork cutout prices and the weak tone in the cash market. June ended 18 cents lower at $77.45 while August was 95 cents higher at $80.28.