Closing Grain Comments: Wheat Impressed Wednesday

Grains started the pit session weaker, but very quickly exploded to the plus side led by Chicago Wheat. Corn was able to finish modestly higher while Soybeans were unable to sustain bullish momentum almost wiping out Monday’s gains.

Wheat futures favored a firmer tone throughout the day on concerns about the global Wheat crop. Chicago Wheat ended 9.25 to 17.25 cents higher, with Kansas City mostly 7 to 12.75 cents higher. Minneapolis ended mostly 7 to 12.25 cents higher. Wheat benefited from a combination of global crop concerns and technical-based buying.

After a choppy day of trade, Corn futures firmed late to end with modest gains of 2 to 4 cents in most contracts, which was near the middle of Wednesday’s range. Corn futures stood tall in the face of heavy spillover pressure from outside markets and a general risk-off attitude across the investment world. Most of Corn’s support came on spillover from the Wheat market.

Soybean futures ended mid-range, with Nov through Jul futures ending 4 to 8 cents lower. Far-deferred futures ended mixed. Strength in the USD index and sharp weakness in the stock market resulted in a risk-off day of trade in the commodity markets. Additional pressure came from forecasts for rains across the driest areas of central and eastern Brazil, the northern soybean production areas, which will propel planting and emergence of the crop.

Lean Hog futures started with a mixed tone, but sharply extended gains in late-morning trade and ended $1.20 to $2.525 higher. Nearby futures led gains. Buying interest in the early going was limited by negative outside markets, as sharp weakness in the stock market raised concerns about meat demand. But traders then turned their focus to narrowing the discount Dec lean Hog futures hold to the cash index.

Live Cattle futures closed 40 to 72.5 cents lower in all but some of the extreme far-deferred contracts, although that was well off session lows. Live Cattle futures were heavily influenced by outside markets Wednesday. Sharp losses in the stock market along with gains in the USD sparked active selling in live Cattle.

 

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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