|Cotton: Afternoon Comments (Wednesday, December 11, 2013 02:23:43)
Cotton futures posted a technical surge Wednesday. Tuesday’s USDA reports were viewed as supportive of the cotton outlook, a 500,000-bale cut in forecast Chinese production seeming encouraging. The rally continued this morning, with a sizeable drop in ICE certificated stocks likely boosting bulls as well. Bulls proved able to trigger a cascade of buy-stops later in the day when the March contract topped its 50-day moving average. March cotton futures soared 1.80 cents to 82.49 cents/pound at Wednesday’s close, and July cotton jumped 1.02cents to 81.66.
|Wheat: Afternoon Comments (Wednesday, December 11, 2013 02:23:43)
Bargain hunting reportedly boosted wheat Wednesday afternoon. Wheat futures turned lower from overnight gains this morning, which very likely reflected news that U.S. grain had been shut out of a big Egyptian tender; that implied U.S. wheat is too expensive. However, price rebounded as Wednesday passed, with wire service sources citing widespread bargain hunting by bulls. March CBOT wheat futures rallied 2.0 cents to $6.4075/bushel as Wednesday’s trading ended, while March KCBT wheat futures edged up 0.5 cent to $6.8475, and March MWE futures bounced 0.5 to $6.685.
|Soybeans: Afternoon Comments (Wednesday, December 11, 2013 02:23:43)
International news seems to support the soy complex. Soy prices bounced modestly from Tuesday losses Wednesday morning and gained ground as the day passed. That strength almost surely reflected news of a big South Korean meal tender, along with a reduced Chinese bean production figure from that country’s official sources. News of big Egyptian sunflower purchase may have boosted oil prices. January soybeans bounced 5.75 cents to $13.44/bushel at their Wednesday settlement, while January soyoil climbed 0.29 cents to 40.40 cents/pound, and January soymeal gained $0.6 to $438.9/ton.
|Corn: Afternoon Comments (Wednesday, December 11, 2013 02:23:43)
Corn futures were firm Wednesday. Corn futures fluctuated around unchanged levels in early trading, then turned higher as Wednesday morning passed. Bulls were likely encouraged by the early morning announcement of a 120,000 sale to an unknown destination and by reports implying strong ethanol production. March corn futures closed 3.25 cents higher at $4.3925/bushel Wednesday afternoon, while May added 3.25 cents to $4.4775.
|Hogs: Afternoon Comments (Wednesday, December 11, 2013 02:23:43)
Persistent cash weakness appears to depress hog futures. The hog/pork industry has been expecting a vigorous seasonal rally to start this month. However, cash prices turned downward late last week and continued sliding Monday and Tuesday. The disparity between the cash quotes and premium CME futures apparently prompting aggressive selling. February hog futures fell 0.95 cents to 87.77 cents/pound in late Wednesday action, while June tumbled 0.57 to 99.66.