Ag markets moved almost unanimously higher Wednesday morning

Soybeans pulled grain prices higher Wednesday morning. Corn and wheat futures set back from overnight gains in apparent response to growing harvest pressure on the yellow grain. However, Brazil’s drought problems and news of a big Chinese purchase sent the soy complex surging, which pulled grain futures upward as well. December corn futures gained 1.5 cents to $3.575/bushel around midsession Wednesday, while May moved up 1.25 to $3.7975.

Chinese news confirmed early soy strength. Delays to the US harvest have reduced predictions for the U.S. soybean crop, whereas severe Brazilian dryness is delaying that country’s bean plantings and lower output forecasts as well. The bullish implications of those shifts were seconded by early news of big soybean sales this morning, thereby boosting CBOT futures. November soybean futures surged 11.75 cents to $9.76/bushel late Wednesday morning, while December soyoil rose 0.48 cents to 32.24 cents/pound, and December soymeal gained $6.4 to $349.3/ton.

The lack of harvest pressure may be spurring wheat gains. Strength spilling over from the corn and soy pits is probably boosting wheat prices as well. Fund short-covering and the lack of harvest pressure on the golden grain may also be encouraging bulls despite having U.S. grain shut out of yesterday’s big Egyptian tender. December CBOT wheat rallied 7.5 cents to $5.2675/bushel in late Wednesday morning action, while December KC wheat added 9.0 cents to $6.1125/bushel, and December MWE wheat climbed 7.0 to $5.76.

Surprising beef gains may be boosting cattle futures. The livestock/meat industry has recently been expecting wholesale beef weakness through late October. That pessimism may be a big reason CME futures are reacting strongly to the modest beef gains seen this morning. December live cattle futures advanced 0.95 cents to 168.00 cents/pound as the lunch hour loomed Wednesday, while April futures rebounded 0.67 to 165.32. Meanwhile, November feeder cattle futures jumped 1.17 cents to 235.10 cents/pound and January feeders vaulted 1.05 cents to 229.30.

Hog market bulls seem to expect surprising spot firmness. Hog futures are trading at large discounts to the CME lean hog index, thereby reflecting widespread seasonal and cyclical bearishness. Indeed, today’s early cash and wholesale news was not friendly. Still, futures rallied sharply, thereby seeming to reflect trader expectations for a short-term bounce in spot values. December hog futures leapt 1.40 cents to 89.85 cents/pound late Wednesday morning, while April hogs ran up 1.45 to 88.70.