Grain markets were supported in late Wednesday morning trading, perhaps driven by a weaker dollar and yet another strong day in wheat. The grain and soy markets surged Tuesday as the U.S. dollar dropped, then lost momentum early this morning before pulling higher before noon. Fine Corn Belt conditions are probably limiting bullish interested in the corn market, but bears may also find little traction with the pivotal mid-July pollination period looming. July corn edged higher 4.5 cents to $3.635/bushel late Wednesday morning, and December gained 4.5 cents to $3.805.
The soy complex found strength again late this morning . The surprisingly slow planting progress on Monday’s Crop Progress report and yesterday’s dollar dive sent beans and meal sharply higher. Then, the bulls seemed to struggle to sustain the upward push early this morning before the soy complex headed higher just before noon Wednesday. This might be explained by the dollar again showing weakness despite the overnight bounce on optimism over Greek debt. July soybean futures gained 4.5 cents to $9.4525/bushel late Wednesday morning, while July soyoil rose 0.66 cents to 34.83 cents/pound, and July meal edged higher $2.80 to $304.6/ton.
Wheat futures traded higher late this morning despite a decidedly mixed overnight session. The wheat markets proved quite strong Tuesday, with weak winter wheat condition ratings and the dollar breakdown appearing to spur fresh wheat buying. Fund short covering and technical buying seem to be continuing the yesterday’s rally. The dollar rebounded overnight but lost steam around midday, and wheat conditions remain suspect, thereby seeming to support further moves higher. July CBOT wheat futures moved 11.25 lower to $5.24/bushel before the lunch hour Wednesday, and July KCwheat rose 10.25 cents to $5.4575/bushel, and July MWE wheat increased 9.25 cent to $5.805.
Bears seemed to have success driving discounted cattle futures lower late Wednesday morning. Despite firm underlying beef demand that triggered CME gains early this week, dropping wholesale prices seem to be weighing down cattle futures as well as the cash market. Mixed-lower beef action Tuesday afternoon and again at midday tended to encourage selling. Big Tuesday afternoon beef losses bode ill for today’s opening. August cattle futures declined 0.8 cents to 151.20 cents/pound, and December futures edged 1.05 cents lower to 153.85. Meanwhile, August feeder cattle futures fell 1.0 cents to 223.32 cents/pound, and November feeders slumped 0.82 to 218.47.
Hog futures headed lower again on Wednesday. While CME hogs performed well Monday, they proved unable to break out above major chart resistance at modestly higher levels. That technical failure, as well as persistent ideas about short-term seasonal weakness seemed to spark long liquidation and short selling Tuesday. Mixed-lower spot market quotes Tuesday afternoon seemed to portend Wednesday’s late morning weakness. August hog futures declined 1.33 cents to 81.42 cents/pound just before lunchtime Wednesday, while December sank 1.27 to 68.02.
Cotton posted a belated Tuesday night bounce and it has continued higher late this Wednesday morning. Recent news on exports and crop conditions, as well as Tuesday’s U.S. dollar plunge had seemingly done little to boost fiber prices. However, ICE cotton did firm yesterday afternoon and built upon that base last night. The fact that the new-crop December contract held at the pivotal 64.00-cent level may have triggered buying from technical and pragmatic traders looking for a short-term advance. July cotton rallied 1.49 cents to 65.06 cents/pound late just before noon Wednesday and December futures climbed 1.05 to 65.23.