Fund liquidation continues weighing on most ag markets. Broad fund selling likely being driven by investor liquidations kept downward pressure upon the ag markets Wednesday morning. The late EIA report looked bearish for ethanol, which in turn dragged corn lower despite early news of a big sale to Taiwan. Technicians have probably joined bears after Tuesday’s decisive breakdown. March corn futures fell 6.25 cents to $3.795/bushel as the lunch hour loomed Wednesday, while July lost 6.5 to $3.9375.
The soy complex is trading mixed to lower. Widespread fund liquidation is almost surely exerting downward pressure upon the bean and product markets, but they are holding up relatively well. USDA news of a big export sale this morning is probably providing support for beans and meal, while stabilizing energy markets may be encouraging bulls in the soyoil pit. On the other hand, the bean and meal charts don’t look very promising at this juncture. March soybean futures slid 1.75 cents to $10.02/bushel late Wednesday morning, while March soyoil edged up 0.17 cents to 32.71 cents/pound, and March meal slipped $1.1 to $332.5/ton.
Wheat futures also continued their recent decline. Little news concerning wheat emerged overnight or this morning, so the golden grain markets apparently lacked the fundamental support provided by reports of corn and bean sales. Slower global economic growth, a worldwide wheat glut and overpriced U.S. grain remain obstacles to rally attempts. March CBOT wheat dropped 9.75 cents to $5.3825/bushel around midsession Wednesday, while March KC wheat slumped 8.25 cents to $5.735/bushel, and March MWE wheat tumbled 7.5 to $5.81.
The cattle market is proving rather mixed. Active fund liquidation has weighed heavily upon CME cattle prices lately despite the concurrent wholesale beef surge. The bearish momentum persisted in early trading, but more supportive cattle and beef fundamentals have seemingly powered the subsequent rebound in the nearby contracts. February live cattle futures climbed 0.40 cents to 157.85 cents/pound shortly before lunchtime Wednesday, while the April contract rallied 0.17 cents to 156.30. January feeder cattle futures jumped 1.17 cents to 222.72 cents/pound, and March feeders vaulted 1.67 cents to 212.60.
Rebounding pork prices sparked early Wednesday hog gains. CME hog prices remained under downward pressure Tuesday, as disappointing spot market developments facilitated widespread fund selling. However, late afternoon pork reports indicated a big jump in wholesale pork quotes, which apparently sparked today’s early strength. February hog futures advanced 0.72 cents to 75.90 cents/pound in late Wednesday morning trading, while June hogs surged 0.97 cents to 87.55.