China news boosted corn Tuesday night. Although corn futures continue suffering from harvest pressure, they rose slightly in overnight trading. The most likely cause of the bounce was news that a private Chinese firm had bought 420,000 tonnes of U.S. corn last week. The futures reaction actually seemed quite subdued. December corn futures gained 0.5 cent to $4.4225/bushel early Wednesday morning, while May added 0.75 cent to $4.635.
Soybeans and meal sustained Tuesday’s losses. There was little news pertinent to soybean futures, so traders seemed to anticipate persistent pressure stemming from the accelerating Corn Belt harvest. In contrast, oil futures continued rising in response to Asian palm oil strength. The product markets are probably responding to the unwinding of meal/oil spreads as well. November soybeans fell 4.25 cents to $12.845/bushel in early Wednesday action, whereas December soyoil rallied 0.17 cents to 40.60 cents/pound, and December soymeal tumbled $3.5 to $411.4/ton.
Wheat futures continued their slide overnight. The wheat markets also suffered from a lack of news Tuesday night. And while traders likely believe that global demand will remain robust and support prices over the intermediate term, one piece of news may have undercut prices. That is, Russian weather is apparently drying out, thereby potentially allowing them to get a few more acres of winter wheat planted this fall. December CBOT wheat slid 1.75 cents to $6.9175 bushel around dawn Wednesday, while December KCBT wheat sagged 1.5 cents to $7.59, and December MGE futures slipped 0.25 cent to $7.53.
Cattle futures may have dipped on South Korean news. Shorts posted just three new delivery notices against October cattle futures Tuesday afternoon, which seemed quite supportive of short-term prospects. However, overnight news that South Korea had found imported U.S. beef containing Zilmax and will suspend some imports as a consequence may have dragged prices downward. December cattle futures edged down 0.02 cents to 132.30 cents/pound early Wednesday morning, while April was steady at 135.07. Meanwhile, November feeder cattle climbed 0.10 cents to 166.42 cents/pound, and January added 0.07 to 166.65.
Hog traders still seem ambivalent about market direction. Deferred hog futures rose modestly Tuesday, which apparently reflected ideas that winter-spring hog and pork supplies will fall short of expectations. Conversely, the nearby October future seemingly declined in response to current cash and/or wholesale weakness. Nearby futures continued sliding Tuesday night. December hog futures were unchanged at 88.20 cents/pound just before sunrise Wednesday, while April sank 0.05 cents to 90.50.
Cotton seems set to rebound today. The lack of damage caused by Tropical Storm Karen seemingly alleviated many industry worries about the fall cotton crop. Indeed, demand concerns related to equity market developments are apparently affecting fiber values at this point. Thus, it wasn’t terribly surprising to see that prices had risen along with S&P 500 futures overnight. December cotton bounced 0.05 cents to 83.74 cents/pound soon after sunrise Wednesday, while March rose 0.21 to 84.36.