Soy complex climbs despite improved weather forecast

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Diminished weather concerns undercut corn futures Wednesday. 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 closed 4.5 cents higher at $5.0425/bushel Wednesday afternoon, while December dropped 5.5 cents to $4.8075.

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 ended Wednesday with a mixed showing. Concurrent soybean gains probably provided some support for the wheat markets Wednesday. However, the winter wheat contracts sank along with deferred corn futures, whereas good export news seemingly boosted the Minneapolis market. September CBOT wheat skidded 4.25 cents to $6.465/bushel late Wednesday afternoon, while September KCBT wheat dipped 1.0 cent to $7.0625, but September MGE futures climbed 4.75 cents to $7.3425.

Equity markets seemingly affected cattle futures Wednesday. A surprising increase in beef cutout values appeared to spark fresh optimism in the cattle pit Wednesday morning. However, mixed midday numbers seemed to undercut prices somewhat. On the other hand, concurrent shifts in cattle and equity index values suggest CME cattle traders were following the stock market, since future economic growth could greatly affect beef demand. October cattle futures rose 0.20 cents to 126.92 cents/pound at their Wednesday settlement, and December edged up 0.15 cents to 129.92. September feeder cattle futures surged 0.65 cents to 155.92 cents/pound, while November ascended 0.78 to 158.62.

The latest pork news undercut hog futures at midweek. After rising sharply Tuesday morning, pork cutout ended the day lower. That reversal, plus much larger losses at noon Wednesday, apparently weighed upon CME hog futures as the day passed. October hog futures settled 0.52 cents lower at 86.05 cents/pound in late Wednesday trading, while December sank 0.40 cents to 83.15.



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