Crop futures continued sliding Wednesday morning. Talk of weak demand and rising yield prospects as spring planting accelerates is again weighing upon corn futures today. The weekly EIA energy sector report also depressed the ethanol market, thereby spurring additional corn sales. May corn futures slipped 1.0 cent to $3.72/bushel around midsession Wednesday, while December lost 1.0 to $3.965.
Beans also led the soy complex downward. As in the corn pit, talk of sagging demand and surging corn plantings, and an early switch to soybeans, appeared to weight rather heavily upon bean futures this morning. Overnight meal support dwindled, while selling spilling over from the crude and palm markets undercut soyoil. May soybean futures fell 7.0 cents to $9.6825/bushel as the lunch hour loomed Wednesday, while May soyoil dropped 0.31 cents to 31.51 cents/pound, and May meal skidded $0.9 to $314.9/ton.
Talk of short-term dryness may be supporting wheat futures turned higher Tuesday morning. Forecasts indicating dryness over the nation’s midsection during the days ahead is probably undercutting corn, but it’s probably supporting the wheat markets due to concerns about the winter wheat crop. Overnight U.S. dollar slippage may also be raising hopes for improved export demand. May CBOT wheat futures gained 1.5 cents to $5.0225/bushel early Wednesday morning, while May KC wheat added 1.25 cents to $5.15/bushel, but May MWE wheat skidded 0.5 to $5.4475.
The cattle market apparently found chart support. Cattle futures opened firmly despite Monday’s big breakdown and late news of a ‘bird flu’ outbreak on an Iowa broiler farm. Big futures discounts and doubts about the cattle/beef complex’s vulnerability to potential broiler losses seemingly supported prices. Sideways GLOBEX trading and mixed beef quotes suggest a flat opening today. June cattle futures advanced 0.85 cents to 146.72 cents/pound at Tuesday’s CME settlement, while August cattle surged 1.22 to 145.45. Meanwhile, May feeder cattle futures ran up 1.82 cents to 206.97 and August vaulted 2.15 to 208.62 cents/pound.
Technical buying seemed to exaggerate Tuesday’s hog surge. As expected, the bird flu news weighed on CME hogs on yesterday’s opening, but bears couldn’t sustain the pressure. The simple fact that the news didn’t greatly change the current wholesale situation may have encouraged bulls, especially after midday pork quotes posted sizeable advances. The subsequent bounce was apparently exaggerated when prices topped short-term chart resistance. Afternoon spot slippage suggests early Wednesday weakness. June hog futures leapt 2.07 cents to 77.60 cents/pound in closing Tuesday action, while December jumped 0.90 to 68.37.