The grain markets were higher Wednesday morning, recouping some of the losses from Tuesday’s selloff. Higher than expected corn yields at 168.3 bushels per acres, the second highest ever, led to higher production and ending stocks that grew by 200 million bushels. Iowa’s corn yield came in 6 bushels per acre higher than the previous record to 189 bushels per acre. The previous record was in 2004 with an average yield of 181 bushels per acre. The trade will focus on exports and South American production going forward. December corn futures gained 2.5 cents to $3.615/bushel early Wednesday, while March climbed 2 cents to $3.70.
Soybean futures began to consolidate early Wednesday morning, attempting to recover from the post WASDE rout. However, the highest recorded soybean yield in US history at 48.3 bu/ac, according to the Nov WASDE, created a supply surge that few expected, lifting production by 100 million bushels and ending stocks by 40 million. The USDA kept production for Brazil and Argentina steady at 100 mmt and 57 mmt, while Conab raised Brazil’s bean production to 101.2-102.8 mmt, up from 100.1-101.9 in Oct. January soybeans gained 3 cents to $8.58/bushel early Wednesday, while December soyoil fell 0.13 cents to 27.14 cents/pound and December meal climbed $1.7 to $293.9.
Wheat futures were higher overnight after sinking in response to the Supply/Demand report suggested wheat supply higher by 50 million bushels. 2015/16 U.S. wheat ending stocks were raised to 911 million bushels compared to the Oct estimate of 861 million while world ending stocks were down to 227.30 mmt compared to the Oct estimate of 228.49 mmt. Wheat futures will remain under pressure due to struggling exports. CBOT March wheat is expected to bounce to the $5.00 range and then retest the support at $4.9225. December CBOT wheat futures gained 5.75 cents to $4.965/bushel Wednesday, while Dec KC wheat climbed 4 cents to $4.6475, and December MWE lifted 4.25 cents to $5.0175.
Live cattle futures fell Tuesday for the eighth consecutive session to a fresh contract low. Even so, boxed beef cutouts were higher with choice up .46 to 216.91 and select up .75 to 207.44. Cattle slaughter so far this week was at 223,000 head, compared to 222,000 head last week and 214,000 head this time last year. Technical selling and worries about wholesale beef demand, as equities turned lower and the dollar climbed, helped contribute to the spiral downward. December live cattle fell 2.45 cents to 128.32 cents/pound Tuesday, while February futures lost 2.62 cents to 130.32. January feeder cattle fell 3.35 cents to 161.57 and March feeders dropped 2.4 cents to 159.70.
Weak cash and hog and pork prices amid seasonal softness weighed on lean hog futures again Tuesday, despite closing the day mixed. Country hogs came in 1.24 lower to 52.10 cents/pound. Hog slaughter so far this week was at 867,000 head, compared to 867,000 head last week and 811,000 head this time last year. The lean hog continuous chart is at the lowest level since 2009. USDA data showed Monday morning’s average pork cutout at77.15 cents/pound. December hog futures gained 0.22 cents to 53.55 cents/pound Tuesday and April hogs dropped 0.87 cents to 61.35.
ICE cotton futures were higher Wednesday morning after falling in response to the WASDE. US production came in 13.28 million bales, vs the average estimate for US cotton at 13.13 million bales and the Oct estimate of 13.34 million. The Nov export estimate was steady with last month at 10.20 million bales, vs the average trade expectation of 9.97 million bales. 2015/16 US ending stocks were 3.1 million bales, vs the average forecast of 3.25 million bales. 2015/16 world ending stocks were 106.09 million bales, vs 106.97 million in Oct. December cotton futures gained 0.26 cents to 62.19 cents/pound, while May cotton advanced 0.25 cents to 63.00.