Corn futures built upon modest Tuesday night gains Wednesday morning. The yellow grain market seemed somewhat vulnerable to fresh selling, but the weekly EIA report indicated increased ethanol production and a sizeable drop in stockpiles. It wasn't terribly surprising to see corn futures surge soon thereafter. September corn rose 9.75 cents to $4.65/bushel late Wednesday morning, while December gained 5.25 cents to $4.525.
The soy complex rebounded from overnight losses. News of Asian palm oil weakness depressed the soy oil market Tuesday night and seemed to weigh upon the whole complex to some extent. However, bean and meal prices reversed sharply in response to early news of a large private soybean sale to China. September soybeans surged 4.75 cents to $12.625/bushel around midsession Wednesday, while November beans added 2.25 to $12.30. September soyoil dropped 0.39 cents to 42.23 cents/pound, whereas September soymeal rebounded $3.5 to $405.3/ton.
The wheat markets benefited little from the latest news Wednesday. Unlike its corn and soy counterparts, wheat did not benefit from supportive news this morning. Although Brazilian sources indicated major losses to recent frost, U.S. traders with memories of the lack of damage done to the U.S. winter wheat crop last spring were not impressed. Prices moved mostly lower despite that news. September CBOT wheat slid 1.0 cent to $6.2725/bushel just before lunchtime Wednesday, and September KCBT wheat skidded 1.75 cents to $6.945, while September MGE futures edged up 2.0 cents to $7.345.
Cattle futures couldn't sustain Tuesday night gains. Tuesday's modest rise in choice cutout values probably encouraged bullish traders to expect another round of cash gains later this week. However, that talk may have been much more muted as the morning passed, which would explain the setback suffered by CME prices. October cattle sank 0.15 cents to 127.92 cents/pound in late Wednesday morning trading, while December lost 0.20 cents to 129.77. September feeder cattle stumbled 0.30 cents lower to 157.40 cents/pound, and November sagged 0.27 cents to 160.37.
Lean hog futures continued climbing in Wednesday morning action. As pointed out earlier, the attraction of the triple-top on the fall/winter charts apparently sparked fresh buying, with the resulting cascade of tripped buy stops likely exaggerating the rally. October hog futures jumped 1.17 cents to 87.70 just before the lunch hour in Chicago, while December surged 1.02 cent to 84.27.