Ag markets posted mixed showings Tuesday night

The corn market rebounded slightly Tuesday night. Talk of larger yields on the eastern and western edges of the Corn Belt seemingly exaggerated a technical reversal from resistance Tuesday. And while similar reports closer to the middle of the Corn Belt apparently weighed upon prices Tuesday evening, the markets bounced early Wednesday morning. Ideas that the Nebraska crops weren't as good as expected may have sparked the move. September corn rose 5.0 cents to $4.8875/bushel around dawn Wednesday, while December gained 4.0 cents to $4.795.

The soy complex also took back Tuesday's losses in overnight action. As in the corn pit, technical and crop tour results undercut soybean futures Tuesday. However, surprisingly low Nebraska results and a seemingly renewed awareness of the soybean crop's vulnerability to late-summer heat and dryness probably powered the early Wednesday bounce. September soybeans jumped 13.25 cents to $13.225/bushel just after sunrise Wednesday, and November beans leapt 15.25 to $13.0575. September soyoil surged 0.34 cents to 43.22 cents/pound, while September soymeal advanced $3.0 to $416.8/ton.

Wheat futures again tracked corn and beans Wednesday morning. The dearth of fundamental news concerning wheat persisted Tuesday night, which once again caused wheat traders to focus their attention upon developments in the corn and soybean pits. That may not change until the weekly Export Sales data are released Thursday morning. September CBOT wheat climbed 6.5 cents to $6.4075/bushel early Wednesday morning, while September KCBT wheat bounced 5.0 cents to $7.0175, and September MGE futures edged up 3.0 cents to $7.38.

Cattle futures were mixed again early Wednesday morning. CME traders still seem to expect cash strength later this week, as well as sustained seasonal gains through winter and spring. However, there is certainly room for doubt, especially with select cutout losing much more than the choice cuts gained Tuesday. That might explain persistent weakness in deferred futures. October cattle futures rallied 0.17 cents to 128.32 cents/pound in early Wednesday activity, while December inched up 0.02 cents to 130.60. September feeder cattle futures lifted 0.07 cents to 158.32 cents/pound, whereas November stalled at 160.72.

The CME hog market seems set for a seasonal decline. Although cash markets were steady to lower Tuesday, wholesale pork values are proved relatively weak. Moreover, a sizeable drop in pork belly values pulled cutout lower, which might easily be a harbinger of much more of the same during the days and weeks just ahead. October hog futures sagged 0.12 cents to 86.82 cents/pound as trading accelerated Wednesday morning, while December dipped 0.25 cents to 83.50.

The cotton market sustained Tuesday's breakdown in overnight action. Although recent rains and a marked improvement in Texas cotton prospects sparked the drop, talk of drying conditions in the Southeast may be largely responsible for the follow-through. December cotton futures fell 0.95 cents to 87.91 cents/pound as the sun rose over New York Wednesday, while March dropped 0.42 cents to 85.86.


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