Corn futures set back from moving average resistance. Tuesday’s late corn strength seemed to mark a decisive price reversal, but futures struggled today. Spot market weakness may also have affected prices, but traders also seemed to be selling after seeing the nearby March contract fail at its 10-day moving average Tuesday. March corn futures dipped 2.25 cents to $3.88/bushel in late Wednesday action, while July lost 1.5 to $4.025.
Spot weakness seemed to undercut the soy complex. After Chinese buyers cancelled two sizeable U.S. soybean shipments last Friday and again Tuesday, the USDA reported a big Chinese purchase this morning. That news probably enabled bulls to push beans and meal higher at the close. However, the soy complex did not perform all that well, which probably reflected talk of spot weakness and big South American crops. In addition, Asian palm weakness depressed soyoil; that may also have spilled over into the bean pit. March soybean futures inched up 1.5 cents to $9.835/bushel as Wednesday’s CBOT session ended, while March soyoil sank 0.43 to 32.41 cents/pound, and March meal rose $4.0 to $330.5/ton.
Wheat bulls couldn’t sustain Tuesday night gains. Renewed worries about Ukrainian conflict supported wheat Tuesday night, since intense Russia-Ukraine fighting could greatly curb Black Sea supplies. But bulls couldn’t sustain the early advance, with the KC and MWE markets moving significantly lower. The temporary midsession rebound posted by the U.S. dollar may have played a role in the reversal. March CBOT wheat edged 0.25 cent lower to $5.3675/bushel at Wednesday’s close, while March KC wheat slumped 5.5 cents to $5.7225/bushel, and March MWE wheat tumbled 8.5 to $5.81.
Cattle futures firmed as Wednesday passed. Cattle futures reacted rather poorly to late Tuesday reports indicating fresh wholesale beef weakness. However, today’s midsession quotes rose modestly, which seemingly spurred buying at the CME. Technicians may also have been buying after the April future seemed to complete a major follow-through drop yesterday. February live cattle futures climbed 0.65 cents to 153.70 cents/pound in late Wednesday trading, while the April contract ran up 0.80 cents to 151.87. January feeder cattle futures jumped 1.22 cents to 215.70, and March feeders soared 2.82 to 205.30.
CME hogs posted a decidedly mixed close. The cash hog markets were called weak to lower again this morning, with industry sources citing a line-up of animals at packing plant gates. Still, Chicago futures bounced from early lows, thereby seeming to reflect Tuesday’s late pork gains. Ultimately, divergent cash and wholesale quotes seemed to have a similar impact upon swine futures. February hog futures ended Wednesday having advanced 0.57 cents to 72.35 cents/pound, while June hogs bounced 0.47 cents to 84.15.