Corn futures were mixed Wednesday morning after bouncing Tuesday. The tightness of the old crop situation again came in to play by apparently supporting the September future. However, the prospect of outstanding mid-summer weather exerted renewed downward pressure upon new crop prices. September corn futures edged 0.25 cent higher to $4.9575/bushel in overnight trading, while December slipped 2.0 cents to $4.755.
The soy complex was also mixed in early Wednesday action. Old crop tightness seemingly played only a small role in trading Tuesday night, nor did traders seem particularly worried about expectations for a huge fall harvest. In fact, news of strong Malaysian palm oil exports during June seemed to boost oil and bean prices overnight. August soybean futures were steady at $13.50/bushel early Wednesday morning, while November beans added 1.75 cents to $12.0475. August soyoil bounced 0.34 cents to 42.45 cents/pound, whereas August soymeal dipped $0.7 to $428.5/ton.
Wheat futures were generally firm early Wednesday. Forecasts for ideal summer weather seemed to depress the spring wheat market, but the effect of excessive rainfall early this month was apparently supporting the winter wheat values. That is, millers are reportedly finding a good bit of spring wheat that had sprouted in the head after recent rains, which implies diminished production. September CBOT wheat rose 1.5 cents to $6.5675/bushel just after sunrise Wednesday, while September KCBT wheat gained 1.75 cents to $6.98, but September MGE futures were unchanged at $7.3725.
Live cattle futures rose modestly in overnight trading. The bounce was not terribly surprising since Tuesday’s weakness did not seem especially warranted. The fact that choice cutout rose slightly on the late-afternoon USDA report probably encouraged a bit of buying as well. Much depends upon the result of country cattle trading later this week. August cattle inched up 0.12 cents to 121.77 cents/pound in early Wednesday activity, while December bounced 0.17 cents to 128.55. August feeder futures edged 0.05 cents higher to 153.30 cents/pound, while November was unchanged at 159.55.
Hog futures rebounded somewhat from Tuesday’s surprising breakdown. Renewed concerns about seasonal weakness apparently weighed upon the hog and pork complex yesterday. Afternoon reports of cash weakness across the Corn Belt seemingly confirmed that pessimism. However, the late wholesale report indicated a significant rise in pork cutout, which almost surely explains the overnight advance. August hog futures climbed 0.30 cents to 97.17 cents/pound Tuesday, while December lifted 0.20 cents to 80.80.
Cotton futures were little changed Wednesday morning. Little news has shown the ability to budge the white fiber market from its recent range. Ultimately, the outlook depends very heavily upon the size of the forthcoming U.S. crop and upon China’s handling of its massive stockpile and its domestic buying program. October cotton was untraded at 85.48 cents/pound in overnight action, while December slid 0.06 cents to 85.08.