Diminished weather concerns undercut corn futures Wednesday morning. Tight old crop conditions seemed to offer surprising support for September corn futures Wednesday, but the deferred contracts moved lower. Talk that the current heat wave will come to a quick end this weekend apparently depressed the late-2013 and 2014 contracts. September corn gained 2.0 cents to $5.0175/bushel around midsession Wednesday, while December dipped 4.0 cents to $4.8225.
The soy complex rose despite the improved weather forecast. As in the corn pit, the nearby soybean and meal contracts appeared to draw support from the tight old crop situation. And while predictions for a surprisingly quick end to the current heat wave weighed upon the deferred contracts, those remained at modestly higher levels. Early news of a sizeable bean sale to China probably provided considerable support. September soybeans rallied 12.0 cents to $14.26/bushel late Wednesday morning, while November beans rallied 3.0 to $13.735. September soyoil added 0.31 cents to 44.47 cents/pound, while September soymeal lifted $7.2 to $463.1/ton.
Wheat futures performed rather well again Wednesday morning. Concurrent corn and soybean gains probably provided some support for the wheat markets in early Wednesday trading. However, the main upward impetus very likely arose from the export markets. Not only is Egypt reported to have posted a large import tender, the USDA announced sizeable sales to unknown destinations early in the day. September CBOT wheat skidded 0.5 cent to $6.5025/bushel in late Wednesday morning action, while September KCBT wheat climbed 3.75 cents to $7.11, and September MGE futures jumped 8.0 cents to $7.375.
Wholesale strength seemingly supported cattle futures Wednesday. A surprising increase in beef cutout values, as well as the concurrent rebound by the equity indexes seemingly sparked fresh optimism in the cattle pit Wednesday morning. Such a sizeable increase might be self-reinforcing, since it increases the chance that packers will pay higher prices for country cattle later this week. October cattle futures surged 0.70 cents to 127.42 cents/pound just before lunchtime Wednesday, and December ran up 0.52 cents to 130.30. September feeder cattle futures leapt 1.15 cents to 156.42 cents/pound, while November soared 1.00 to 158.85.
Tuesday afternoon pork news undercut hog futures Wednesday morning. Tuesday’s midsession pork reports were very strong, thereby boosting futures later in the day. However, the afternoon reports proved much less encouraging, which almost surely caused swine futures to reverse this morning. October hog futures slid 0.17 cents to 86.40 cents/pound late Wednesday morning, while December sank 0.17 cents to 83.37.