The WASDE report roiled the corn market. Late gains suggested traders were expecting today's WASDE report to boost nearby corn prices. The actual World Agricultural Supply & Demand Estimates (WASDE) report looked bullish for the yellow grain outlook, since the USDA cut its carryout forecast substantially. However, the CBOT market couldn't sustain its initial bullish response. May corn had inched up 0.25 cent to $5.0725/bushel late Wednesday morning, while December dipped 4.5 to $5.085.
The soy complex reacted well to the WASDE data. Traders were quite optimistic about the likely WASDE result prior to the report's release, but that didn't keep them from buying actively in response to the news. The indicated 10 million bushel drop in the U.S. carryout was indicative of the bullish nature of the results. May soybeans jumped 16.0 cents to $14.985/bushel just before lunchtime Wednesday, while May soyoil rallied 0.39 cents to 42.50 cents/pound, and May soymeal surged $7.4 to $485.5/ton.
The wheat markets were hurt by the USDA numbers. Today's WASDE report indicated the wheat outlook had declined, with a 30-million bushel cut in its feed usage figure causing a commensurate increase in the carryout forecast. The fact that current winter wheat conditions are not conducive to a bumper crop probably limited the bearish reaction. May CBOT wheat futures fell 10.75 cents to $6.7025/bushel in late Wednesday morning trading, while May KCBT wheat futures tumbled 6.75 cents to $7.3475, and May MWE futures lost 7.25 cents to $7.16.
Nearby cattle futures firmed Wednesday morning. Beef prices proved mixed Tuesday, which probably explains the mixed performance posted last night. However, ideas that grocers will buy beef aggressively during the early part of April in order to meet their needs for early May features seem to be supporting prices this morning. June cattle futures climbed 0.40 cents to 135.67 cents/pound around midsession Wednesday, while December declined 0.17 to 140.37. Meanwhile, May feeder cattle advanced 0.87 cents to 179.75 cents/pound, and August added 1.00 to 181.57.
Hog futures have bounced from deeply discounted levels. The hog and pork markets seemingly peaked at extreme highs last week and the industry now expects a sustained decline from that peak. However, recent losses pushed futures far below current cash levels, which seemingly sparked widespread short covering/bottom picking today. June hog futures bounced 3.00 cents to 121.75 cents/pound late Wednesday morning, and December rose 0.42 to 89.27.