Lean hog futures were mostly higher on Wednesday. The rally in corn futures was supportive on concern that higher feed costs will limit pork production. Cash hog prices were steady to $1 higher today as packers are still working to fill slaughter schedules through the end of the week. February closed 35 cents higher at $85.18 and June was 5 cents higher at $100.95.
Corn futures closed sharply higher on Wednesday. The bullish Supply/Demand report helped rally the market. USDA pegged ending stocks for 2010/11 at 675 million bushels, down 54 million from last month. Ending stocks are projected to be the lowest in 15 years and would match the modern day low for the stocks-to-use ratio at 5.0%. USDA also lowered world corn ending stocks by 4.5 million metric tons. March ended 24 1/4 cents higher at $6.98 and December was 10 cents higher at $6.14 1/2.
Soybean futures traded solidly higher on Wednesday. Spillover support from corn and strong losses in the dollar index were supportive factors for the soybean market. The Supply/Demand report was neutral for soybeans. USDA left ending stocks at the tight level of 140 million bushels. In world numbers, USDA raised Brazil's production to a record 68.5 million tonnes, but cut Argentina's soybean projection by 1 million tonnes to 49.5 million. March closed 16 3/4 cents higher at $14.51 and November was 19 1/2 cents higher at $13.97.