Profit-taking reportedly hit the crop markets Tuesday night. The crop markets posted impressive gains Tuesday, with the nearby contracts making multi-month highs. Their rallies may persist, especially if country prices remain strong, but the markets apparently suffered from widespread profit-taking in overnight action. May corn sank 4.0 cents to $5.1175/bushel early Wednesday morning, while December slumped 3.75 cents to $5.085.
The tight old crop situation seemingly limited soy losses. Soybean and product futures also moved lower in Tuesday night action, but firmed as trading accelerated Wednesday morning. Nearby bean and meal contracts seemed firmest, which is rather fitting since the old-crop situation is rather obviously quite tight. Asian palm weakness seemingly weighed on oil values. May soybeans slipped 1.5 cents to $15.225/bushel in early Wednesday action, while May soyoil slid 0.21 cents to 42.56 cents/pound, and May soymeal rose $1.1 to $501.0/ton.
The wheat markets also backed away from Tuesday's highs. The Wheat Quality Council Tour got underway Tuesday, with preliminary results for Kansas falling well short of year-ago levels; that news boosted winter wheat prices. However, as in the corn and bean pits, wheat futures declined in Tuesday night action. May CBOT wheat futures dropped 5.0 cents to $7.03/bushel around dawn Wednesday, while May KCBT wheat futures sagged 3.75 cents to $7.935, and May MWE futures dipped 2.25 to $7.45.
Cattle futures have come under fresh pressure. Tuesday's late wholesale news was decidedly mixed, with a sizeable rise in choice cutout being essentially matched by a drop in select values. That apparently left the market open to continued selling based upon worries about seasonal weakness through the second quarter. June cattle fell 0.32 cents to 136.70 cents/pound as Wednesday dawned over Chicago, while December tumbled 0.75 cents to 141.62. Meanwhile, May feeder cattle dropped 0.45 cents to 180.12 cents/pound, and August skidded 0.10 cents to 186.45.
Cash and wholesale weakness are undercutting hog futures. CME lean hog futures had held up well early this week as traders looked for seasonal strength to emerge. And while cash and pork quotes were firm early in the week, they proved quite weak Tuesday afternoon, thereby weighing heavily upon Chicago prices. June hog futures dove 1.37 cents to 123.90 cents/pound early Wednesday morning, while December dipped 0.22 to 92.72.
Cotton futures traded firmly Tuesday night. As has become rather routine lately, little pertinent cotton news emerged overnight, which again left the field open to technicians. They apparently continued buying after pushing the fiber market sharply higher yesterday. Weakness in the other crop markets may have limited the cotton gains. July cotton stalled at 94.06 cents/pound soon after sunrise (EDT) Wednesday, while December cotton moved 0.10 higher to 83.52.