Corn futures retreated early Wednesday morning after seeing support Tuesday, following the oilseed complex higher on the sense that Chinese demand is just as robust as ever. FSA acreage reported this morning shows planted (and failed) corn acres at 84.811 million acres compared to USDA value reported in the Oct WASDE of 88.4 million. Corn export inspections came in at 573,298 tonnes, below the estimate of 625,000-750,000 tonnes. The crop progress report showed the corn crop harvest at 42% complete, compared to 27% last week and the 43% five-year average while the corn condition rating stayed steady from last week at 68%, compared to 74% last year. Brent crude and the dollar index was lower while gold was higher. December corn futures moved 1.25 cents lower to $3.8325/bushel early Wednesday, while March lost 1.5 cents to $3.94.
Soybean futures pulled back Wednesday morning after jumping to two-month highs Tuesday on multiple indicators showing Chinese demand for the oilseed remains strong. Strong weekly export data and Sep Chinese soybean imports that grew 44.3% year-over-year to 7.26 million tonnes revived China demand hopes. FSA data out early this morning showed soybean planted acres at 81.079 million acres, compared to the USDA’s most recent estimate of 83.2 million. Soybean harvest was reported at 62% complete in Tuesday’s crop progress report. The NOPA crush estimate for Thursday’s report came in at 129.24 million bushels, marking what analysts feel may be the largest Sep crush since 2007. November soybeans moved 0.5 cents lower to $9.1375/bushel early Wednesday morning, while December soyoil gained 0.14 cents to 28.93 cents/pound and December meal lost $0.6 to $317.1/ton.
The wheat complex was slightly lower Wednesday morning after moving over 2% higher Tuesday. The winter wheat crop was reported at 64% planted Tuesday afternoon, compared to 49% last week and the 66% five-year average. The FSA reported this morning wheat planted acres at 52.507 million acres, compared to 54.6 million reported in the WASDE on Oct 9. Prevent planted acres were reported at .697 million acres, compared to .696 million reported last month. The December CBOT wheat futures were 12.25 cents higher at $5.19/bushel Tuesday, while Dec KC wheat gained 13.5 cents to $5.11, and December MWE edged 8 cents higher to $5.3625.
Live cattle futures corrected lower Tuesday after gaining ground Monday and rising four of the last six days as a turnaround in cash beef prices has suggested to the trade that much of the heavy weight cattle inventory has been cleaned up, fixing the supply glut and firming futures prices. Boxed beef cutouts jumped higher Tuesday with choice up 3.16 to 208.46 and select up 4.22 to 199.01. Cattle slaughter so far this week was at 224,000 head, compared to 220,000 head last week and 226,000 head this time last year. December cattle lost 0.25 cents to 137.20 cent/pound Tuesday, while February cattle fell 0.20 cents to 139.47 cents/pound. November feeder cattle moved 0.27 cents lower to 186.60 cents/pound, while January feeders lost 0.42 cents to 181.00 cents/pound.
Nearby hogs firmed Tuesday while the deferred months weakened. Wednesday, the October contact will go off the board. Cash hogs were 1.45 higher to 71.40 suggesting nearby buying interest is still intact even as wholesales wind down October needs and grocers consider November holiday buying, which will show increased competition from poultry and beef for features. There is still an 7 cent spread between the lean hog cash index and the Dec futures contract, with futures trading at a discount to cash, suggesting more upside potential. Hog slaughter so far this week is 829,000 head, compared to 868,000 last week and 854,000 this time last year. December hog futures gained 0.90 cents to 67.57 cents/pound Tuesday, while April hogs dropped 0.20 to 73.55.
ICE Cotton futures corrected lower early Wednesday after moving 3% higher Tuesday. The move Tuesday was prompted by lower than expected supply data and on news in the soy complex that highlighted Chinese demand is still alive and well, despite recent setbacks in the financial markets. Also, expectations that crop conditions may be lower due to heavy rains, especially in the southeast U.S., brought strength. Last Friday, Cotton production came in at 13.34 million bales (480 lb.), compared to the trade forecast of 13.51 million and the Sep estimate of 13.43 million. Exports were reported at 10.20 million bales, higher than the trade estimate of 10.10 million and steady with the USDA’s Sep forecast. December cotton futures lost 0.27 cents to 63.59 cents/pound, while May cotton slid 0.4 cents to 63.61.