Corn and wheat futures post good gains on Wednesday

Corn futures were solidly higher on Wednesday. Technical buying and the unwinding of soybean/corn spreads ahead of the USDA annual outlook conference on Thursday and Friday of this week supported the market. Strong export demand and projections for tight old-crop supplies are supportive for front end contracts while new-crop gains were limited by ideas of increased acreage this spring and record crop production forecasts. March closed 8 3/4 cents higher at $6.38 1/4 and December was 3/4 of a cent higher at $5.64 1/2.

Soybean futures closed slightly higher on Wednesday. Soybean futures closing slightly higher after trading lower much of the session. The unwinding of soybean/corn spreads weighed on prices as traders position for USDA’s annual outlook conference on Thursday and Friday. Confirmation of more export business with China and the rebound in crude oil futures today helped pull futures higher into the close. March closed 1 1/4 cents higher at $12.72 1/4 and November was 1 3/4 cents higher at $12.64.

Wheat futures traded higher on Wednesday. Winter wheat contracts led the gains on technical buying and spillover strength from corn ahead of USDA’s annual outlook conference later this week. Gains at the MGE were limited by forecasts for some snowfall in the northern Plains, which should help boost soil moisture levels ahead of spring. CBOT March closed 11 1/2 cents higher at $6.44 1/2, KCBT March was 8 cents higher at $6.85 and MGE March ended 1 1/2 cents higher at $8.18 1/4.

Cattle futures closed higher on Wednesday, hitting new contract highs again today. Firm cash market fundamentals were supportive. Showlists are smaller this week and boxed beef prices were sharply higher on Tuesday and again at midday. Packer margins remain poor, but cash trade is expected to be steady to higher this week. Futures trade was limited some by positioning ahead of the Cattle on Feed report due out Friday afternoon. February ended 45 cents higher at $129.35 and April was 3 cents higher at $131.15.

Lean hog futures traded higher on Wednesday. The steady to firm cash market and light short-covering ahead of the Cold Storage report due out this afternoon supported futures trade. Packers are holding up cash market bids despite poor margins and the 39 cent decline in pork cutouts on Tuesday. The average trade estimate for the Cold Storage report for pork in storage for January is 539.8 million pounds. April closed 50 cents higher at $90.33 and June was 78 cents higher at $100.13.