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Soybean futures finished mostly around a penny higher, which was good for a high-range close. Meal and soyoil also ended firmer. Soybean futures faced early weakness amid profit-taking and negative outside markets. But while the U.S. dollar index remained firmer, crude oil and gold futures rallied. This aided in the late turnaround in the bean pit, but traders also don't want to see the new-crop corn/soybean spread narrow as the market works to secure soybean acres.
Corn futures traded in a narrowly mixed range for much of the day, but old-crop futures rallied into the close to finish 6 3/4 to 8 3/4 cents higher. New-crop futures settled narrowly mixed. Corn futures benefitted from short-covering amid ideas the market’s downside had been overdone yesterday when traders removed risk ahead of the USDA’s Outlook Forum, in which the agency is expected to deliver bearish corn acreage projections tomorrow.
Wheat futures ended 7 to 11 1/2 cents higher in Chicago, 7 1/4 to 9 1/4 cents higher in Kansas City and mostly 6 1/2 to 7 1/2 cents higher in Minneapolis. Futures finished in the upper portion of today's range at all three exchanges. Wheat futures were supported today by ideas Tuesday's losses were overdone, which led to a round of short-covering. But given bearish long-term fundamentals, wheat will need help to get more than a short-term corrective bounce.
Cotton futures posted sharp losses today and finished on or near session lows. That opens the door to followthrough selling pressure Thursday. Cotton futures were initially pressured by concerns with Chinese demand amid signs the country's economic growth is slowing and strength in the U.S. dollar index tied to euro-zone concerns.
April through August lean hog futures closed 20 to 77 1/2 cents higher, with far-deferred contracts ending mixed. Nearby contracts posted anywhere from a mid- to a high-range close. Traders remain hopeful a seasonal increase in pork demand will boost the pork product and cash hog markets. But after a big one-day gain late last week, pork cutout values have softened -- pushing packers' profit margins back into the red.
Live cattle futures opened under pressure, but they firmed as the day progressed to finish with gains of 2 1/2 to 45 cents. Feeder cattle futures also rallied late to close narrowly mixed. Traders in the live and feeder cattle took advantage of a firmer U.S. dollar by booking profits early today, but as both of their fundamentals are bullish, profit-taking gave way to bargain buying.
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