Ag markets posted general gains Wednesday

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Corn futures built upon modest Tuesday night gains Wednesday. The yellow grain market seemed somewhat vulnerable to early selling, but the weekly EIA report indicated increased ethanol production and a sizeable drop in stockpiles. Wire service sources also cited slow farmers sales of old crop product. September corn jumped 9.5 cents to $4.6475/bushel at the Wednesday close, while December climbed 8.0 cents to $4.5525.

The soy complex rebounded from overnight losses. News of Asian palm oil weakness depressed the soy oil market in early trading and seemed to weigh upon the whole complex to some extent. However, bean and meal prices reversed sharply in response to early news of a large private soybean sale to China. They ended the day quite firmly. September soybeans leapt 11.75 cents to $12.695/bushel as trading wound down Wednesday, while November beans added 11.25 to $12.39. September soyoil dropped 0.28 cents to 42.34 cents/pound, whereas September soymeal surged $6.1 to $407.9/ton.

The wheat markets eventually followed corn and beans higher Wednesday. Unlike its corn and soy counterparts, wheat did not benefit from supportive news Wednesday morning. Although Brazilian sources indicated major losses to recent frost, U.S. traders with memories of the lack of damage done to the U.S. winter wheat crop last spring were not impressed. Nevertheless, golden grain prices did turn upward later in the day. September CBOT wheat settled 2.25 cents higher at $6.305/bushel late Wednesday, and September KCBT wheat rose 2.5 cents to $6.9875, while September MGE futures advanced 3.5 cents to $7.36.

Cattle futures struggled to modest gains Wednesday. Tuesday’s modest rise in choice cutout values offered little encouragement for bullish traders Wednesday. However, the midsession beef report much more substantial gains, which boosted futures somewhat. Still, the weak CME showing may engender little bullish enthusiasm. October cattle futures closed up 0.10 cents to 128.17 cents/pound Wednesday afternoon, while December edged 0.02 cents higher to 130.00. September feeder cattle stumbled 0.25 cents lower to 157.45 cents/pound, and November sagged 0.25 cents to 160.40.

Lean hog futures continued climbing in Wednesday action. As pointed out earlier, the attraction of the triple-top on the fall/winter charts apparently sparked fresh buying, with the resulting cascade of tripped buy stops likely exaggerating the rally. Large discounts built into the autumn contracts are likely encouraging bulls as well. October hog futures soared 1.62 cents to 88.15 at Wednesday’s settlement, while December zoomed up 1.42 cents to 84.67.



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