Grains continued higher Wednesday on weather and short covering. Corn was up as high as 7 cents today erasing post-WASDE losses from last week. Support appears to be coming from follow-through buying on crop conditions and weather. MO and KS have 239,000 and 120,000 unplanted corn acres, respectively, and firmness continued today as the markets seem to be challenging yield/acreage estimates. NOAA’s 6-10 day weather forecast from southern TX through the eastern corn belt still calls for high moisture. July corn futures are gained 5.5 cents to $3.595/bushel at the close Wednesday, and December lifted 5 cents to $3.75.
The soy complex continued higher as wetness calls into question the tail end of planting. July soybeans were up as high as 9.72 today but ample world supplies should limit upside potential. Plantings are 87% complete yet still there are 11 million acres remaining, 3.3 million from MO and 1.6 million from KS. Persistent rains are challenging this effort. July soybean futures gained 9 cents to $9.665/bushel at the end of trading Wednesday, while July soyoil fell .10 cents to 32.80 cents/pound, and July meal advanced $3 to $323.8/ton.
Wheat futures traded neutral-higher. Winter wheat harvest continues, despite higher than normal moisture, and is improved by 7% to 11% complete, versus 20% last year. Early yields are coming in at 25-50 bu/ac. France cut their wheat ending stocks from 3.6 to 3.0 million tonnes due to increased exports. Concerns about how well the U.S. can compete with world exporting countries could be adding support. July CBOT wheat futures rose 2.75 cents to $4.915/bushel at the market close Wednesday, while July KC wheat slipped .5 cents to $5.06/bushel, and July MWE dropped .75 cents to $5.4675.
CME cattle futures lowered on Wednesday despite recent firmness in beef cutouts. Livestock futures seem to be facing opposing factors; on one hand, some are buying due to discounts to cash whereas others may be sellers in anticipation of the demand slow-down after the July 4th holiday. August cattle futures fell .40 cents to 150.82 cents/pound at the close Wednesday, while December futures lost 0.82 cents to 153.97. Meanwhile, August feeder cattle futures dropped .10 cents to 224.75 cents/pound, and November feeders lifted .02 cents to 218.47.
The hog market saw a bounce Wednesday after consolidating the past few days in response to lean hogs futures being vastly oversold. The trade continues to struggle with oversupply despite being at the cusp of what is considered to be the highest demand period of the year. Even so, some analysts are predicting a possible move upward to $80-81. August hog futures gained 0.95 cents to 76.50 cents/pound at Wednesday’s ending session, while December rallied 1.20 to 64.00.