Ag markets were narrowly mixed Tuesday night

Corn futures were virtually unchanged Tuesday night. Cash firmness reportedly supported the nearby September contract, whereas traders may be waiting for the latest weather forecasts before pressing the deferred contracts in one direction or the other. September corn futures climbed 1.255 cent to $5.465/bushel early Wednesday morning, while December was unchanged at $5.1075.

The soy complex was mixed in overnight trading. Talk that cash bids across the Corn Belt had declined Tuesday afternoon slowed the advance by the nearby soybean and meal contracts. In contrast, new crop prices came under renewed downward pressure despite no real shift in the latest weather forecasts. Rebounding palm oil prices apparently boosted the oil market. August soybean futures rose 1.25 cents to $14.765/bushel just after sunrise Wednesday, while August soyoil edged 0.06 cents higher to 45.77 cents/pound and August soymeal gained $1.4 to $468.2/ton.

Wheat futures were also subdued in early Wednesday trading. The lack of fresh news concerning the weather outlook may have limited price moves. On the other hand, traders seemed even more optimistic about prospects for increased Chinese imports during the coming months, which probably powered the modest overnight gains. September CBOT wheat ground out a 3.25-cent increase to $6.7275/bushel early Wednesday morning, while September KCBT wheat edged 1.75 cents higher to $7.055 and September MGE futures lifted 2.0 cents to $7.62.

Cattle futures were mixed to higher Tuesday night. That probably reflects industry uncertainty about the second-half outlook. That is, mixed readings for wholesale prices were not particularly helpful to those looking to judge short-term price prospects. Moreover, traders are trying to decide if the premiums already built into CME futures will justified during the weeks ahead. August cattle inched up 0.07 cents to 122.20 cents/pound just after dawn Wednesday, while December added 0.05 cents to 128.75. August feeder futures declined 0.05 cents to 152.50 cents/pound, and November fell 0.20 cents to 157.90.

Hog futures also posted modest gains in early Wednesday action. CME traders seemingly believe futures are underpriced despite the general downward trend in cash and wholesale prices lately. They may be relying upon industry problems with summer heat and the potential for reduced fourth quarter sales stemming from the PEDV disease outbreak. August hog futures advanced 0.17 cents to 96.47 cents/pound early Wednesday morning, while December rallied 0.20 cents to 82.70.

Cotton futures rebounded slightly Wednesday morning. The white fiber market has recently been depressed by decent rains in Texas and by the prospect of diminished buying from the Chinese. Those seemingly have the potential to push the market even lower during the coming weeks, but a general lack of fresh news apparently allowed the modest overnight bounce. October cotton was untraded at 84.67 cents/pound in early Wednesday trading, while December edged 0.08 cents higher to 84.45.


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