Corn futures firmed Wednesday. Despite current concerns about the global economic & political situation, corn futures were pretty stable today. News that China is lifting its ban on Syngenta’s Viptera GMO corn is probably providing persistent support, since their ban greatly diminished U.S. corn & DDG exports early this year. The weekly EIA report also implied support from ethanol industry demand. March corn futures settled up 2.25 cents at $4.0825/bushel Wednesday, while July rose 2.25 to $4.2325.
The soy complex staged a late-session comeback. The unsettled geopolitical and economic situations seemed to support the soybean complex Wednesday, despite worries that global demand will suffer in the changing environment. Conversely, fine spring weather has Brazil looking forward to another record crop, which weighed on bean prices this morning. However, afternoon rebounds by the energy and equity sectors apparently pulled beans and meal higher and limited oil losses. January soybean futures gained 3.5 cents to $10.27/bushel as Wednesday’s CBOT session ended, while January soyoil stalled at 31.77 cents/pound, and January meal moved up $2.7 to $359.3/ton.
Changing Russian rules continued boosting the wheat markets. Russian officials published new rules for the nation’s wheat export industry this morning, although they didn’t explicitly restrict sales. Still, markets apparently gave great credence to industry sources saying the changes will have the same effect. March CBOT wheat jumped 25.25 cents to $6.485/bushel at their Wednesday close, while March KC wheat leapt 26.75 cents to $6.815/bushel and March MWE wheat surged 25.5 to $6.5975.
Bearish demand ideas kept depressing the cattle market. Cattle traders clearly believe soaring prices have badly undercut beef demand, which in turn is badly undermining the cattle market. The latest losses probably mark a serious overreaction, but midsession mixed to lower beef quotes didn’t support the bullish cause. February live cattle crashed 2.92 cents to 155.82 cents/pound as Wednesday’s pit session ended, while April futures plummeted 2.55 cents to 155.55. January and March feeder cattle futures once again collapsed the 3.00-cent daily limit to 216.60 and 212.25 cents/pound, respectively.
The hog and pork complex rebounded from limit-down levels. Big pork losses posted Tuesday afternoon caused CME hog futures to dive in concert with cattle prices on today’s opening. Suspicions that the Chicago losses were overdone, especially after calculations showed the CME index will drop rather modestly tomorrow, sparked a sizeable rebound from early lows, but unanimously weak midsession quotes renewed the downward pressure. February hog futures dove 1.20 cents to 80.47 cents/pound in late Wednesday action, while June hogs fell 1.25 cents to 88.90.