Corn futures seemed to follow soybeans higher Wednesday morning. Corn prices dipped overnight and appeared to be vulnerable to more of the same, especially with ethanol output slowing last week and an Argentine firm boosting that country’s harvest forecast. And yet, CBOT prices turned higher, seeming to rise in concert with the soybean rally. May corn futures gained 4.0 cents to 3.775/bushel shortly before lunchtime Wednesday, while December added 3.0 to $4.02.
Demand hopes reportedly powered early soy gains. Although talk of improved demand apparently spurred buying in the soy complex Tuesday, the rally slowed overnight. Still, CBOT prices accelerated upward this morning, with wire services reporting talk of improved domestic bean demand as a factor behind the rise. Slow farmer selling may also be encouraging bulls. May soybean futures surged 10.25 cents to $9.705/bushel in late Wednesday morning action, while May soyoil jumped 0.39 cents to 31.69 cents/pound, and May meal climbed $1.4 to $315.0/ton.
Wheat futures were trading mixed to higher around midsession. Golden grain prices rebounded from Tuesday losses last night despite the upward reversal posted by the U.S. dollar. We suspect a forecast for a significant drop in Germany’s winter wheat crop sparked modest buying, as did Russian statements about their wheat export tariff. Prices set back in early morning trading, but firmed again before noon. We wonder if news that Bunge and a Saudi firm are buying CWB from Canada boosted prices. May CBOT wheat rose 1.75 cents to $4.9875/bushel late Wednesday morning, while May KC wheat lifted 0.25 cents to $5.22/bushel, and May MWE wheat edged up 2.25 to $5.5425.
Cattle futures continued Tuesday’s advance. The large discounts built into CME cattle futures may be exaggerating the current advance. The rise seems technical in nature, but we also suspect wholesale firmness is encouraging bulls as well. June cattle futures leapt 1.10 cents to 151.52 cents/pound as the lunch hour loomed Wednesday, while August cattle rallied 0.95 to 148.92 cents/pound. Meanwhile, May feeder cattle futures vaulted 1.32 cents to 212.12 cents/pound, and August feeders surged 1.20 to 213.95.
Technical selling is probably exaggerating hog losses. April hogs futures slipped only slightly as its noon CDT expiration loomed this morning, but the deferred contracts fell sharply. Sizeable futures premium probably rendered them vulnerable to aggressive technical selling, since mid-session quotes pointed to continued spot market firmness. June hog futures plunged 2.65 cents to 75.82 cents/pound around midsession Wednesday, while December dropped 1.20 to 67.60.