Corn futures edged higher again Wednesday. Talk of reduced corn plantings apparently supported the corn market again today. Bulls were also encouraged by the early Canadian Wheat Board (CWB) forecast for a 16.2 million tonne annual decline in 2015/16 global production. May corn futures settled up 1.75 cents to $3.95/bushel Wednesday, while December corn inched 0.75 higher to $4.18.
The soy complex closed generally lower. The soy complex traded narrowly mixed overnight, with big South American production seeming to dampen the impact of a reduced global supply forecast posted by the CWB. Soybeans traded on either side of unchanged, but ended modestly lower, possibly in response to a private estimate for a larger Brazilian harvest. The produce markets also ended weakly. May soybean futures dipped 3.0 cents to $9.7875/bushel at Wednesday’s close, while May soyoil edged 0.07 cents lower to 31.04 cents/pound, and May meal sagged $1.8 to $324.5/ton.
The potential for increased rainfall weighed on the wheat markets. Talk of improved Russian production and a CWB forecast for reduced 2015 global output seemed to offset in the wheat markets this morning. However, traders did not react well to forecasts for improved rainfall over the southern U.S. Plains in the near future. May CBOT wheat ended Wednesday having slumped 4.5 cents to $5.19/bushel, while May KC wheat slid 2.25 cents to $5.63/bushel, and May MWE wheat lost 1.0 to $5.8075.
The cattle rally seemingly stalled. Cash strength has clearly powered nearby cattle futures upward from discounted levels recently. Wholesale news also helped earlier this week. However, grocers tend to curtail their buying late each month, which may explain bulls’ inability to sustain the rally today. April cattle futures closed down 0.27 cents to 161.72 cents/pound Wednesday, while August cattle dropped 0.72 at 149.60 cents/pound. Meanwhile, April feeder cattle futures dove 1.67 cents to 217.25 cents/pound, and August feeders fell 1.50 to 217.75.
Supply concerns were probably worrying hog traders Wednesday. The nearby April hog contract started the day firmly, thereby appearing to reflect ideas that the months-long price decline may soon end. Premiums built into the summer contracts apparently rendered them vulnerable to selling based on forecasts for huge hog numbers on Friday’s quarterly USDA Hogs & Pigs report, but prices staged an impressive comeback late in the day. April hog futures climbed 1.22 cents to 59.82 cents/pound at the CME close, while June hogs skidded 0.07 to 74.60.