Corn futures resumed their Tuesday slide Wednesday. Forecasts for fine mid-summer weather apparently weighed upon new crop corn futures, while sliding old crops bids reportedly undercut nearby corn and soy futures. Broad financial market weakness and technical factors may also have contributed to the yellow grain slide. September corn futures dropped 14.25 cents to $5.0825/bushel in late Wednesday trading, while December slid 5.25 cents to $4.8025.
Diving old crop prices sparked widespread soybean losses Wednesday. The prospect of large new crop supplies apparently encouraged country buyers to drop their bids for soybeans and meal Wednesday, which sparked a followed-through to their huge Tuesday plunge. Fine weather and broad financial market weakness also appeared to contribute to the breakdown. August soybean futures plummeted by the daily 70-cent limit to $13.925/bushel at the Wednesday close, while August soyoil dove 0.52 cents to 44.26 cents/pound, and August soymeal plunged $20.0 to $467.8/ton.
Wheat futures held up surprisingly well again Wednesday. Despite sizeable corn and soybean losses and the generally bearish environment, the wheat markets lost only minimal ground. Some might credit talk of Brazilian frost and Russian producer claims that their crop will fall short of recent forecasts, but we are more inclined to point to the looming end to the U.S. winter wheat harvest and substantially reduced hedging pressure from domestic farmers. September CBOT wheat settled just 0.5 cent lower at $6.5325/bushel Wednesday afternoon, while September KCBT wheat dipped 1.75 cents to $6.9725 and September MGE futures skidded 0.5 cent to $7.435.
Cattle futures apparently suffered from the broad financial market decline Wednesday. After reacting poorly to large wholesale losses Tuesday night, CME cattle futures rebounded on news of steady Kansas trading around midday. However, the broad financial market breakdown that dominated trading later in the day apparently pushed cattle prices downward as well. Traders clearly worry about the beef demand outlook. August cattle sank 0.33 cents to 121.57 cents/pound at Wednesday’s settlement, while December lost 0.32 cents to 128.27. August feeder futures tumbled 0.57 cents to 153.02 cents/pound, while November declined 0.55 cents to 158.85.
Hog futures were mixed Wednesday. After vaulting upward Tuesday, the nearby August contract gave back a portion of the previous day’s gain. In contrast, the fall and winter contracts rose slightly, possibly in response to talk about the damage being done by the PEDV outbreak and/or to their large discounts to recent quotes for the CME lean hog index. August hog futures edged 0.25 cents lower to 98.92 cents/pound in late Wednesday trading, while December rallied 0.47 cents to 83.45.