Corn futures traded lower on Wednesday. USDA reports were mixed for corn this morning. USDA revised corn production down 123 million bushels from October to 12.310 billion bushels. The production estimate came in 70 million to 90 million bushels below trade estimates. However in the supply and demand update, USDA largely offset lower production by cutting use feed and residual use. Ending stocks fell 23 million bushels, but traders were looking for a larger cut. Outside markets were bearish today as the stock market was trading strongly lower while the dollar index was sharply higher. December ended 4 1/2 cents lower at $6.56 and March was 6 cents lower at $6.65.
Soybean futures were strongly lower on Wednesday. The USDA reports were largely bearish for soybeans other than for a cut in the production estimate to 3.046 billion bushels from the previous forecast at 3.060 billion. USDA reduced demand by lowering the export forecast by 50 million bushels. Ending stocks increased 35 million bushels, nearly double what traders were expectations. USDA also raised its forecast for Brazil’s soybean production to 75 million tonnes from 73.5 million last month. Strength in the dollar and weakness in the stock market were also bearish factors. January closed 19 1/2 cents lower at $11.85 1/2 and March was 19 1/4 cents lower at $11.95 1/2.
Wheat futures traded mostly lower on Wednesday. Winter wheat markets were pressured by outside markets and some bearish reaction to the USDA reports. Both projected U.S. and global wheat ending stocks came in above pre-report trade expectations. The re-survey of spring wheat states by USDA cut the crop by just 9 million bu. vs. pre-report trade estimates averaging a 20 million bushel decline. Outside markets were bearish as renewed concern about European debt pushed the dollar index sharply higher today. CBOT December was 14 cents lower at $6.43, KCBT December closed 25 1/2 cents lower at $7.13 while MGE December ended 5 1/2 cents higher.
Cattle futures closed mixed on Wednesday. Outside markets weighed on most contracts today as the stock market was sharply lower and the dollar index was higher. Gains were seen at times on strengthening boxed beef prices and ideas that cash market will be firm this week. December closed 15 cents lower at $122.60 and February was 25 cents lower at $124.45.
Lean hog futures traded lower on Wednesday. The market was pressured by pork cutouts declining $1.52 on Tuesday and the weak tone in the cash market. With several plants closed on Friday for Veteran’s Day, demand for hogs has been limited this week. Outside markets also pressured futures. Renewed concern about European debt weighed heavily on the stock market while the dollar index was higher. December closed 8 cents lower at $85.15 and February was 38 cents lower at $86.95.