Nearby corn futures edged higher Wednesday morning. Talk of reduced corn plantings is apparently supporting the corn market again today. Bulls were also encouraged by today’s Canadian Wheat Board (CWB) forecast for a 16.2 million tonne annual decline in 2015/16 global production. May corn futures rose 1.0 cent to $3.9425/bushel as the lunch hour loomed Wednesday, while December corn slipped 0.5 to $4.1775.
The soy complex turned moderately higher in late morning trading. The soy complex traded narrowly mixed overnight, with big South American production seeming to dampen the impact of a reduced global supply forecast posted by the CWB. Soybeans later turned modestly higher, although the reason for the rise wasn’t readily apparent. Nearby futures still seem to face major technical resistance at slightly higher levels. May soybean futures gained 1.75 cents to $9.835/bushel around midsession Wednesday, while May soyoil crept up 0.05 cents to 31.16 cents/pound, and May meal stalled at $326.3/ton.
Talk of forthcoming rainfall is weighing on winter wheat markets. Talk of improved Russian production and a CWB forecast for reduced 2015 output seemed to offset in the wheat markets this morning. However, traders rather obviously did not react well to forecasts for increased rainfall over the southern U.S. Plains in the near future. May CBOT wheat slumped 3.75 cents to $5.1975/bushel late Wednesday morning, while May KC wheat slid 1.0 cent to $5.6425/bushel, whereas May MWE wheat added 2.0 to $5.8375.
The cattle rally has seemingly stalled. Cash strength has clearly powered nearby cattle futures upward from discounted levels recently. Wholesale news has also helped early this week. However, grocers tend to curtail their buying late each month, which may explain bulls’ inability to sustain the rally today. April cattle futures dipped 0.30 cents to 161.70 cents/pound late Tuesday morning, while August cattle dipped 0.47 at 149.85 cents/pound. Meanwhile, April feeder cattle futures dropped 1.05 cents to 217.87 cents/pound, and August feeders fell 1.57 to 217.67.
Supply concerns seemed to depress deferred hog futures Wednesday morning. The nearby April hog contract started the day firmly, thereby appearing to reflect ideas that the months-long price decline may soon end. However, premiums built into the summer contracts seemingly rendered them vulnerable to selling based on forecasts for huge hog numbers on Friday’s quarterly USDA Hogs & Pigs report. April hog futures skidded 0.10 cents to 58.50 cents/pound around lunchtime Wednesday, while June hogs tumbled 1.27 to 73.40.