Corn futures dipped Wednesday morning. Little fresh news concerning corn has emerged since Tuesday, which is apparently spurring long liquidation ahead of forthcoming reports. The weekly Export Sales report comes out tomorrow, as does the latest CONAB report on Brazilian crop production. The monthly USDA WASDE report follows on Friday. July corn declined 4.25 cents to $5.1325/bushel Wednesday morning, while December dipped 3.5 cents to $5.06.
Talk of increased South American production and reduced demand is weighing on soy prices. Brazil’s USDA counterpart CONAB is set to release its latest estimate of that country’s 2013/14 soybean crop tomorrow morning, with many expecting a fresh record. Traders also suspect Chinese buying will slow during the coming weeks and months, with S.A. beans likely to flow into the U.S. this spring. July soybeans fell 12.25 cents to $14.4725/bushel around midsession Tuesday, while July soyoil slid 0.18 cents to 40.93 cents/pound, and July soymeal sagged $3.1 to $474.4/ton.
The wheat markets diverged somewhat this morning. The wheat situation still seems bullish with drought dominating the winter wheat outlook and excess moisture slowing spring wheat plantings in the north. The Black Sea situation hasn’t improved either. Winter wheat futures declined despite the news, but Minneapolis prices did rise modestly. July CBOT wheat futures slumped 2.0 cents to $7.37/bushel late Wednesday morning, and July KCBT wheat futures skidded 1.5 cents to $8.4425, while July MWE futures gained 2.75 to $8.075.
Persistent beef weakness may be weighing on cattle futures. Although many in the livestock/meat industry may be anticipating a seasonal bounce in beef prices as grocers buy for Memorial Day, the latest price news hasn’t been supportive. Indeed, one has to suspect that talk of continued beef losses weighed on prices this morning. June cattle dropped 0.60 cents to 137.70 cents/pound just before lunchtime Wednesday, while December stumbled 0.45 cents at 144.17. Meanwhile, August feeder cattle edged up 0.12 cents to 191.37 cents/pound, and October sank 0.25 cents to 191.95.
Big wholesale losses sent hog futures lower. Although the cash hog markets have proven surprisingly firm this week, Tuesday’s late wholesale reports stated pork values almost 4.0 cents lower on the day. Such huge losses certainly won’t encourage pork packers to pay up for swine during the days ahead. June hog futures dove 1.17 cent to 122.05 cents/pound by late Wednesday morning, while December lost 0.27 cents to 94.67.