The crop markets turned generally mixed Wednesday morning. The ongoing U.S. dollar rebound apparently continues weighing on the commodity markets, since a more valuable greenback increases their cost to export customers. Good progress in planting the 2015 corn crop and the production implications of generally early plantings encourage bearish views on markets that are already well supplied. July corn futures slipped 1.5 cents to $3.605/bushel late Wednesday morning, while December lost 2.0 to $3.7825.
Soybeans and meal remained under downward pressure. Ideas that current U.S. growing conditions favor a strong start to the soybean crop seemed to drag the soy complex lower throughout Wednesday’s early trade. Big South American supplies aren’t helping the bullish cause either, nor is the latest U.S. dollar resurgence. Oil futures pushed above unchanged levels in concert with rising crude and palm oil quotes; that may have brought bean prices off their overnight lows. July soybean futures dropped 2.25 cents to $9.44/bushel around midsession Wednesday, while July soyoil rose 0.16 cents to 32.34 cents/pound, and July meal sank $2.2 to $304.9/ton.
Ukraine news may have undercut wheat quotes overnight. The ongoing dollar rally is probably weighing on wheat futures as well, especially since American grain is generally viewed as being expensive by export customers. Also, Ukraine officials boosted their forecast for their 2015 production by 2.0 million to 60 million tonnes. Conversely, continued rainfall over U.S. winter wheat areas suggests potential crop damage and underlying price support. July CBOT wheat futures slid 3.5 cents to $5.0675/bushel shortly after sunrise Wednesday, while July KC wheat sagged 3.5 cents to $5.365/bushel, and July MWE wheat dipped 2.25 to $5.62.
Cattle futures reversed field again this morning. Recent CME strength and Tuesday afternoon news that choice beef cutout had surged to a fresh record supported the nearby contracts upon today’s opening. However, bulls couldn’t sustain the strength and prices turned decisively lower. One has to suspect the industry remains pessimistic about late spring and summer price outlook. June live cattle futures sank 0.90 cents to 151.07 cents/pound in late Wednesday morning action, while August cattle dove 1.02 to 149.57. Meanwhile, August feeder cattle futures plunged 1.27 cents to 215.87 cents/pound, and November feeders tanked 1.45 to 213.70.
Hog futures posted a mixed Wednesday morning performance. The livestock/meat industry is apparently pessimistic about short-term hog/pork prospects as well, with today’s early cash weakness offsetting the latest rise in the CME index. Diverging pork quotes did little to help the bullish cause. June hog futures slumped 0.20 cents to 81.95 cents/pound as the lunch hour loomed Wednesday, while December skidded 0.05 to 70.15.