Corn futures were down a little early Wednesday morning after a 1% rise Tuesday on slow farmer selling and an uptick in buyers capitalizing on 5-week low prices. September China DDG imports were up compared to August while September corn imports were down 72% vs August. Year-over-year, September China DDG imports were up 73.% from last September to 933,537 tonnes. U.S. ethanol numbers will be released at 9:30 a.m. CDT this morning and export sales will be released Thursday at 7:30 a.m. The dollar index and gold were both lower while equity futures were higher. China’s largest exchange, the Shanghai Composite closed down 3.47% Wednesday and the Shenzhen Composite fell 5.9%. December the corn futures moved 0.75 cents higher to $3.76/bushel early Wednesday, while March moved 1 cent lower to $3.8625.
The soy complex was firmer early Wednesday ahead of the export sales data out Thursday. This marks the second day of gains after falling the four previous sessions. The November contract found support near the 20-day moving average which converged with the 50-day Tuesday. The next major resistance level will be at $9.26, the 100-day moving average. The Buenos Aires Grains Exchange reported farmers expect to plant 19.8 million hectares of soybeans, 1% less than last season. Tuesday, ADM increased its stake in Wilmar, the largest palm-oil trading house in the world, to 22%. The CME revised the daily soybean price limit to 60 cents from 70 cents, starting November. November soybeans moved 3.5 cents higher to $8.995/bushel Wednesday, while December soyoil gained 0.31 cents to 28.97 cents/pound and December meal climbed $0.7 to $310.20/ton.
Wheat futures rebounded Tuesday after reaching 4-week lows Monday on forecast rains improving the outlook for the U.S. winter wheat crop. Buyers stepped in as it became clear the market was technically oversold. Britain’s wheat crop was estimated down 2.6% from last year, according to their farm ministry, to 16.17 million tonnes, but above their previous estimate of 16.13 million. In the U.S., the improved weather outlook is poised to cause the 15/16 wheat stocks-to-use ratio to rise to six-year highs as the absence of drought fears in the Southern Plains will add to the already ample global supply picture. December CBOT wheat futures were 5.5 cents higher at $4.9125/bushel Tuesday, while Dec KC wheat advanced 4 cents to $4.765, and December MWE moved 4.5 cents higher to $5.09.
Live cattle futures climbed higher Tuesday, helped by increased seasonal demand and cash prices that are expected to rise. Beef market firmness continued to lift futures higher with choice up 1.74 to 215.38 and select up 2.63 to 210.36. Dec cattle broke above the 50-day moving average to find support above 141.13 and the next resistance level is at the 100-day average of 146.71. Cattle slaughter was 225,000 head, compared to 224,000 head last week and 230,000 head this time last year. December cattle gained 2 cents to 143.17 cent/pound Tuesday, while February cattle lifted 2 cents to 143.17 cents/pound. November feeder cattle moved .72 cents higher to 192.45 cents/pound, while January feeders gained 0.70 cents to 184.37 cents/pound.
CME lean hogs bounced higher Tuesday with the nearby contract up over 3.5% on an unexpected surge in buying as packers were caught short of inventory for the week. Hog futures started downward late last week in what appears to be the early stages of seasonal demand weakness, largely expected by the trade. Hog slaughter so far this week was at 801,000 head, compared to 829,000 last week and 858,000 this time last year. Cash hogs were 1.14 lower to 68.66. Nearby hog futures continue to trade at a significant discount to cash but that spread has narrowed as demand wanes heading into winter, likely causing the lean hog index to move lower. December hog futures gained 2.32 cents to 67.85 cents/pound Tuesday, while April hogs gained 0.75 to 71.82.
ICE Cotton futures were higher Tuesday helped by a weaker dollar and a lower cotton condition rating. Cotton closed lower Monday and gained 3.3% last week. Cotton harvest progress came in at 31% versus 22% last week and the 32% five-year average. Lower crop condition ratings from recent SE rains, lower than expected exports, and a lower U.S. production estimate have been bullish for the crop that, globally, still faces a bearish supply outlook. Last Tuesday, news of the increased Chinese demand in the soy complex also drove the rise in the cotton trade as demand fears regarding the largest cotton consumer in the world subsided. December cotton futures gained 0.58 cents to 63.78 cents/pound Tuesday, while May cotton edged 0.53 cents higher to 64.03.