The EIA report seemed to undercut corn futures Wednesday morning. The U.S. dollar bounced overnight, while energy prices dropped, thereby getting corn futures off to a weak start this morning. The dollar rose farther by midmorning, while the EIA report looked bearish across the board for the energy sector. Huge ethanol stocks almost surely weighed on corn futures. March corn sank 1.5 cents to $3.8425/bushel in late Wednesday morning action, while July slid 1.5 to $3.995.
The soy complex is also giving back Tuesday gains. Little fresh soy sector news has emerged, which has seemingly rendered the bean and product markets vulnerable to selling in the wake of Tuesday’s big surge. Good South American weather and the bearish EIA data are likely weighing on beans and oil, whereas the meal market seems unable to escape the generally selling. March soybean futures fell 12.0 cents to $9.75/bushel around midsession Wednesday, while March soyoil dipped 0.11 cents to 30.69 cents/pound, and March meal dipped $5.5 to $335.1/ton.
Wheat markets are holding up relatively well. Wheat futures joined the bullish stampede Tuesday and continued rising last night. Sizeable purchase tenders from Egypt, Saudi Arabia, Iraq, Jordan and others apparently sparked fresh optimism about the strength of underlying demand. Still, U.S. dollar gains and energy losses seemed to drag futures off their early highs. March CBOT wheat inched up 1.75 cents to $5.155/bushel just before lunchtime Wednesday, while March KC wheat gained 2.75 to $5.6175/bushel, and March MWE wheat slumped 3.25 to $5.7275.
Cattle futures moved mostly lower Wednesday morning. Strong beef gains seemed to reverse recent CME cattle losses yesterday, but late-afternoon wholesale reports were not impressive. That news apparently sank cattle futures on today’s opening. However, traders still seem cautiously optimistic about short-term prospects, since expiring February had moved back above unchanged levels and the deferred contracts had cut their losses. April live cattle futures stumbled 0.55 cents to 150.02 cents/pound late Wednesday morning, while August cattle lost 0.52 cents to 141.45 cents/pound. Meanwhile, March feeder cattle futures dove 1.42 cents to 198.07 cents/pound and May feeders dropped 1.55 to 198.90.
Weight news likely exaggerated early hog losses. Tuesday’s late pork reports probably disappointed those hoping for fresh wholesale strength. Bullish hopes also took a hit from the weekly Iowa-Southern Minnesota cash report, since it indicated a contra-seasonal rise in hog weights, thereby diverging from the seasonal norm and implying larger hog supplies. April hog futures plunged 2.00 cents to 68.87 cents/pound as the lunch hour loomed Wednesday, while June hogs plummeted 2.20 cents to 80.42.
Cotton futures are trading in mixed fashion. In addition to the general bullishness experienced Tuesday, the cotton advance had a major technical component as well. That is, the nearby March future decisively broke out above the pivotal 60-cent level. Bulls are almost surely hoping for a follow-through rally, but only the March contract could sustain gains in the face of fresh U.S. dollar strength and energy and ag sector weakness. March cotton futures rose 0.15 cents to 61.60 cents/pound just before noon (EST) Wednesday, while the July contract skidded 0.13 to 62.15.