Soy futures continued boosting crop prices Wednesday morning

The soy complex continues pulling crop prices higher. The corn harvest may have been slightly delayed by the latest Corn Belt weather system, but there’s little doubt it’s advancing rapidly. Nevertheless, CBOT futures are rising again today as talk of torrid soy demand sends that complex higher (and pulls the other crop markets upward in concert). December corn futures rose 3.75 cents to $3.6825/bushel late Wednesday morning, while May added 3.5 to $3.9025.

Palm oil news is apparently encouraging soy market bulls. Soybean and product prices kept rising on signs of demand strength Tuesday night and have moved even higher in response to supportive Malaysian and Indonesian palm oil developments. Production and stocks are apparently falling short of forecasts, which in turn pushed prices out of their downtrend. Beans and oil have surged, with meal proving surprisingly strong as well. Crude oil gains may also be providing support. November soybean futures jumped 21.00 cents to $10.29/bushel around midsession Wednesday, while December soyoil soared 0.83 cents to 33.62 cents/pound, and December soymeal leapt $15.1 to $390.2/ton.

The wheat markets are also rising. Bulls in the wheat pits may be reacting to talk that Black Sea wheat isn’t doing well and needs improved weather to prepare for winter and/or talk of Australian problems. But it’s pretty clear that the soy strength is spilling over into the wheat markets as well. December CBOT wheat gained 4.5 cents to $5.3525/bushel in late Wednesday morning action, while December KC wheat moved up 3.0 cents to $6.05/bushel, and December MWE wheat gained 3.25 to $5.80.

Cattle futures couldn’t sustain their early bounce. Beef prices surged again Tuesday, which may have played a role in the bounce posted just after pit trading commenced this morning. However, bulls couldn’t sustain the move, thereby suggesting a lack of industry confidence about the late-2014 outlook. December live cattle futures dropped 0.70 cents to 167.07 cents/pound just before lunchtime Wednesday, while April futures sank 0.67 to 165.10. Meanwhile, November feeder cattle futures rebounded 0.47 cents to 234.12 cents/pound, and January feeders inched up 0.12 cents to 229.17.

Ongoing cash losses are weighing on CME hogs. Although midday wholesale prices bounced from Tuesday’s big losses, the cash market remains under pressure. Indeed, with the CME index expected to drop to 94.61 cents/pound tomorrow, the breakdown has greatly reduced discounts built into nearby futures. December hog futures plunged 1.92 cents to 88.27 cents/pound late Wednesday morning, while April hogs fell 1.42 to 88.12.