Ag markets were generally mixed overnight trading

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After rallying strongly to start this week, corn futures slipped in Tuesday night trading. The decline was partly a reaction to the preceding gains and partly a response to favorable growing conditions across the Corn Belt. Some traders also expressed concerns about a market reaction if/when the Federal Reserve backs away from its current policy of extreme liquidity after its two-day meeting ends today. July corn dipped 3.25 cents to $6.70/bushel early Wednesday morning, while December slid 0.75 cent to $5.4975.

After rallying strongly to start this week, corn futures slipped in Tuesday night trading. The decline was partly a reaction to the preceding gains and partly a response to favorable growing conditions across the Corn Belt. Some traders also expressed concerns about a market reaction if/when the Federal Reserve backs away from its current policy of extreme liquidity after its two-day meeting ends today. July corn dipped 3.25 cents to $6.70/bushel early Wednesday morning, while December slid 0.75 cent to $5.4975.

Wheat futures were mixed in overnight trading. Talk that India wants to push an additional 2.0 million tonnes of its huge domestic stockpile onto the export market seemingly undercut the winter wheat markets, whereas worries that a quick shift to hot weather over the Northern Plains seemed to support spring wheat futures. July CBOT wheat inched 0.5 cent lower to $6.87/bushel in early Wednesday electronic trading, while July KCBT wheat edged up 0.75 cent to $7.20, whereas July MGE futures gained 2.0 to $8.01.

Cattle futures seemingly declined in concert with choice grade beef values Tuesday, then bounced moderately in overnight trading. That may represent strength spilling over from the hog and pork complex and from renewed hopes about the cash market outlook. Whether bulls can sustain an upward push from this point is very much open to question. August cattle climbed 0.25 cents to 119.75 cents/pound as the sun rose over Chicago this morning, while December lifted 0.30 cents to 125.32. August feeder cattle futures ran up 0.55 cents to 144.35 cents/pound, and November increased 0.42 to 149.97.

Hog futures rose strongly again Tuesday and sustained the advance in early Wednesday trading. Ongoing cash and wholesale gains very likely played sizeable roles in the rally, as did fresh talk about the potential impact of the ongoing PEDV outbreak across the Midwest. Actually, growing losses of piglets to the disease are likely applicable to the fourth-quarter outlook, but traders generally concentrate upon the nearby contracts. July hog futures jumped 0.87 cents to 99.57 cents/pound in early Wednesday action, while December moved up 0.45 cents to 82.15.

Improving U.S. weather, especially in west Texas and technical considerations badly undercut cotton futures to start this week. And while improving new crop production prospects continued depressing the deferred ICE contracts overnight, the July contract bounced. The general tightness of the old crop situation (aside from the massive Chinese stockpile) and the looming expiration of July options and futures seemingly boosted the nearby future. July cotton advanced 0.37 cents to 85.35 cents/pound early Wednesday morning, while December lost 0.08 to 87.24.



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