A late bounce limited Wednesday’s corn losses. General weakness in the soy and wheat complexes seemed to weigh upon corn futures today. Bears also seemed to react to EIA news of a big rise in ethanol stocks on reduced production last week. However, the yellow grain market staged a strong comeback just before the CBOT pit session ended, which suggested bears were evening up positions ahead of tomorrow’s weekly Export Sales report. March corn futures closed down 1.75 cents at $3.7575/bushel Wednesday, while July lost 1.75 to $3.9175.
The soy complex ended mixed Wednesday. Brazilian officials were reportedly clearly main roads by forcing striking truckers to move and by fining them after Monday’s big disruptions. That news rather clearly depressed the bean and meal markets overnight. Futures firmed this morning, but could generate no upward momentum. Growing talk that Brazilian production won’t meet earlier expectations may have offered support. Spillover strength from the energy markets seemed to be boost soyoil. March soybean futures stumbled 8.25 cents lower to $10.0775/bushel at their Tuesday settlement, while March soyoil rallied 0.29 cents to 31.71 cents/pound, but March meal sank $6.4 to $350.5/ton.
The wheat markets fell despite a big Egyptian purchase. Bullish wheat traders have been hoping for news of a sizeable Egyptian purchase using a $100 million line of credit from the U.S. government. Those hopes were met this morning when a 120,000-tonne purchase was reported. However, the fact that U.S. financing powered the deal seemed to blunt its impact. Futures turned decidedly lower soon after the announcement and remained weak through the balance of the session. March CBOT wheat dropped 8.0 cents to $4.9775/bushel in late Wednesday trading, while March KC wheat slumped 7.5 cents to $5.2825/bushel, and March MWE wheat fell 13.25 to $5.5275.
Cattle futures reacted belatedly to beef gains. Wholesale beef prices surged early this week and followed through this morning, thereby suggesting recent talk of reduced interest from consumers and export customers has been greatly exaggerated. That would seemingly explain the rebound from fresh 2015 lows posted by most contracts Tuesday. Their large discounts to recent cash quotes also look quite large. April cattle futures jumped 1.27 cents to 146.85 cents/pound at Wednesday’s CME close, while August cattle soared 1.52 cents to 139.52 cents/pound. Meanwhile, March feeder cattle futures leapt 1.37 cents to 196.97 cents/pound and May feeders vaulted 1.25 to 195.57.
Rebounding cash quotes again supported hog futures Wednesday. Resurgent cash quotes boosted hog futures Tuesday. The country gains resumed this morning and apparently spurred continued strength in Chicago. Conversely, pork values have proven surprisingly weak, thereby potentially limiting CME advances. April hog futures ended Wednesday having advanced 0.75 cents to 69.32 cents/pound, while June hogs surged 1.00 to 83.97.