Corn, Soybeans Attempt to Add Weather Premium
Corn: December futures gapped lower in the overnight session on a continued lack of enthusiasm over USDA’s July WASDE figures, trading 5 ¾ cents below yesterday’s finish, 10 1/4 cents shy of the low made on July 6 at $5.66 1/2. Attempts to fill the gap were successful, helping pave the way for a push above $6.00 at the open.
Soybeans: Soybeans traded either side of unchanged throughout the overnight session and was able to muster some momentum at the open along with the corn on continued concerns over hot, dry weather in the Midwest. Soymeal futures traded double digit gains as much as $14.60 per ton while bean oil dove as Malaysian palm oil futures plunged more than 8% to its lowest level in over a year, largely resulting from weak exports and renewed fears of COVID-19.
Wheat: Recession fears and diminished concerns about inflation seemed to undercut the wheat complex again Wednesday. That is, traders and investors appear much more worried about the potential impact a forthcoming recession might have upon wheat demand than the influence likely to be exerted by inflation, despite today’s report indicating the U.S. CPI had posted its largest annual increase during June, at 9.1%, since late 1981.
Cattle: Improving cash market fundamentals supported gains in the cattle futures markets today. At mid-week, only light cash cattle trade has occurred at an average price of $145.88, according to USDA.
Hogs: The lean hog futures market was boosted today by the prospect of strengthening cash fundamentals and an improving near-term technical posture. July lean hog futures presently show a solid $1.43 premium to the cash index heading into the July contract’s expiration Friday and settlement July 19.