Surging wheat prices seemingly boosted corn futures Wednesday morning. Although ongoing progress in the current harvest is apparently boosting country corn supplies, corn futures rose modestly this morning. That almost surely reflected strength spilling over from the wheat market. December corn gained 6.25 cents to $4.55/bushel in late Wednesday morning action, and May added 5.75 cents to $4.7575.
Sliding country prices apparently undercut the soy complex in early action. The current U.S. soybean harvest is just getting underway, but the beans coming onto the market are reportedly depressing country elevator bids rather quickly. The cash losses reportedly undercut CBOT futures Wednesday morning as well. November soybeans crept up 2.0 cents to $13.145/bushel just before lunchtime Wednesday, while October soyoil dipped 0.03 cents to 41.81 cents/pound, but October soymeal gained $1.7 to $415.8/ton.
The wheat markets continued rising in late Wednesday morning trading. Chinese wheat prices have reportedly reached record highs, thereby highlighting that country’s likely need to import grain in the near future. Moreover, Argentina’s winter wheat fields are being hit with potentially damaging frost, which might also reduce global supplies. December CBOT wheat surged 12.75 cents to $6.71/bushel around midsession Wednesday, while December KCBT wheat jumped 15.5 cents to $7.205, and December MGE futures leapt 18.25 cents to $7.2325.
Cattle futures continued their early-week advance. Bullish cattle-on-feed news and higher cash prices boosted cattle futures early this week, but persistent wholesale strength has enabled bulls to sustain the upward momentum. They seemed to be encouraged somewhat by Wednesday morning events. Whether they’ll be able to do so through the balance of the week is open to question. October cattle futures ran up 0.42 cents to 127.75 cents/pound by late Wednesday morning, while December gained 0.42 cents to 131.65. Meanwhile, October feeder cattle sank 0.50 cents to 163.27 cents/pound, and January sagged 0.52 cents to 163.10.
The nearby contracts led hog futures higher Wednesday morning. After soaring Tuesday on a combination of bullish cash and wholesale rumors, discounts to the exchange cash index and news that Smithfield shareholders had approved its takeover by Shuanghui, the nearby hog contracts continued climbing this morning. However, talk from industry sources seemed to confirm the mixed nature of Tuesday afternoon reports, which limited strength in the Chicago market. October hog futures rallied 0.85 cents to 93.35 cents/pound in late Wednesday morning action, while December improved by 0.35 cents to 88.42.