The corn market continued its recent advance Wednesday night. Spillover from beans and wheat may be supporting prices, but a portion of the advance looks quite technical in nature as well. Strong demand and weather are encouraging bulls. FSA revised corn acres in farm programs higher early this morning, but a rise was expected. December corn futures gained 3.25 cents to $3.81/bushel early Thursday morning, while May added 2.75 to $4.0175.
The soy complex is bouncing back from Wednesday’s break. Although the spot bean and meal markets apparently remain quite tight, CBOT futures suffered sharp reversals yesterday. The drop seemed largely technical in nature, with lots of bulls taking profits after prices lost upward momentum. Thus, the overnight bounce wasn’t surprising. FSA acreage revision seemingly had little impact. January soybean futures rose 3.5 cents to $10.5125/bushel Wednesday night, while December soyoil inched 0.04 cents lower to 32.18 cents/pound, and December meal rallied $4.7 to $399.7/ton.
The wheat markets are mixed to higher. Wheat traders apparently worry that the current cold spell will seriously diminish U.S. winter wheat crop next year, which has provided consistent support lately. The FSA made very minor changes to wheat acreage, so that likely had little impact on prices. Futures are mostly higher this morning. December CBOT wheat crept up 0.25 cent to $5.43/bushel in predawn Thursday action, while December KC wheat edged 1.0 cent higher to $6.0025/bushel, and December MWE wheat skidded 0.25 at $5.81.
Beef strength probably spurred cattle buying Wednesday. CME cattle have recently struggled despite supportive fundamental and seasonal factors. However, the nearby contracts held above short-term moving average support early this week, which may have set the stage for yesterday’s bullish response to the strong midsession beef quotes. The rise may presage stronger cash quotes late this week and a strong opening today. December live cattle futures closed up 0.50 cents at 167.75 cents/pound Wednesday afternoon, while April futures advanced 0.72 to 168.22. Meanwhile, January feeder cattle futures surged 0.72 cents to 233.27 cents/pound, and March feeders vaulted 1.25 to 231.80.
Talk of firming spot markets again seemed to support CME hogs. Cash hog prices were called steady Wednesday morning, but pork cutouts apparently rose modestly before noon. The market continued acting as if a short-term, seasonal advance is looming, but late Wednesday data implies a weak opening today. December hog futures ended Wednesday having rallied 0.77 cents to 90.67, while April hogs climbed 0.70 to 91.70.
Cotton is struggling to hold above long-term lows. Financial and soybean market weakness seemed to undercut cotton futures Wednesday. ICE traders also had to worry about technicians ready to jump on a drop to five-year lows under 60 cents/pound. Prices remained under pressure Wednesday night December cotton futures slipped 0.10 cents to 61.84 cents/pound shortly after dawn Thursday, while March futures slumped 0.22 cents to 60.12.