Corn futures stabilized Wednesday morning. Despite current concerns about the global economic & political situation, corn futures are pretty stable. 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 looked supportive of ethanol industry demand. March corn futures inched 0.5 cent lower to $4.055/bushel late Wednesday morning, while July lost 0.5 to $4.205.
The soy complex remains mixed around midsession. The unsettled geopolitical and economic situations seem to be supporting the soybean complex, despite worries that global demand will suffer in the changing environment. Conversely, fine spring weather has Brazil looking forward to another record crop, which is seemingly weighing on bean prices this morning. Asian palm strength appears to be limiting the negative impact of declining crude oil prices. January soybean futures rose 0.5 cent to $10.24/bushel just before lunchtime Wednesday, while January soyoil slid 0.09 cents to 31.68 cents/pound, and January meal moved up $1.5 to $358.1/ton.
Changing Russian rules continue boosting the wheat markets. Russian officials published new rules for its wheat export industry this morning, although they didn’t explicitly restrict sales. Still, markets are relying upon industry sources saying the changes will have the same effect. March CBOT wheat gained 3.0 cents to $6.2625/bushel around midsession Wednesday, while March KC wheat advanced 6.25 cents to $6.61/bushel and March MWE wheat surged 9.5 to $6.4375.
Bearish demand ideas keep 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 that doesn’t mean the cattle and beef complex won’t continue falling in the days ahead. February live cattle crashed the daily 3.00-cent limit to 155.75 cents/pound shortly after Wednesday’s opening, which April futures quickly matched, falling to 155.10. January and March feeder cattle futures once again plummeted the 3.00-cent daily limit to 216.60 and 212.25 cents/pound, respectively.
The hog and pork complex have 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. However, suspicions that the Chicago losses are overdone, especially after calculations showed the CME index will drop rather modestly tomorrow, sparked a sizeable rebound from early lows. February hog futures plunged 1.87 cents to 79.80 cents/pound in late Wednesday morning action, while June hogs fell 1.45 cents to 88.70.
Equity strength may be limiting cotton losses. Tuesday’s equity market decline clearly exacerbated trader and investor worries that a global recession is looming. The fact that apparel demand routinely suffers rather badly in such circumstances probably caused the sizeable drop posted by ICE cotton futures. However, equity indexes have bounced, which may be limiting follow-through losses after nearby March cotton fell back below the 60-cent level yesterday. March cotton futures slumped 0.23 cents to 59.55 cents/pound shortly before noon (EST) Wednesday, while the July contract sank 0.32 to 60.75.