Malaysian Palm Oil futures edged lower, as political uncertainty in the EU + some industry data due the Thursday deterred traders from taking risky positions on Wednesday.
Currently it is more like a positioning ahead of the MPOB (Malaysian Palm Oil Board) data and USDA (US Department of Agriculture) report.
Wheat futures faced pressure during the session and selling intensified ahead of the close. Chicago Wheat ended with losses of 0.12 to 0.1775, Kansas City closed around 0.17 lower and Minneapolis Wheat ended mostly around 0.02 lower. Wheat traders focused on removing risk ahead of USDA's Supply & Demand Report on Thursday, encouraged by a firmer USD and mounting Global economic headwinds.
Corn futures faced sharp price pressure into the close on Wednesday, with nearby contacts leading losses. May Corn ended 0.2475 lower, with July down 0.1575. The rest of the market ended mostly 0.11 to 0.12 lower. Funds sold an estimated 14,000 contracts (70-M bu.) of Corn Wednesday. Sell stops were triggered into the close due to negative outside markets. The USD index returned above the 80.00 mark, but came off its high as Corn was closing.
Soybean futures closed 0.07 to 0.1175 lower, which was in the middle of Wednesday's trading range. Soybean Meal futures finished mixed, while Soyoil was lower. Soybean futures faced heavy pressure from outside markets today as traders reacted to building EuroZone concerns with broad-based risk aversion. But the Soybean market brushed aside some of this strong spillover pressure as the market recovered well off session lows. Futures were also pressured by position squaring ahead of Thursday morning's Supply & Demand Report from USDA.
Lean Hog futures finished 0.15 to 0.725 higher in the June through Apr 2013 contracts, which was a mid-range close. Front-month May futures closed 0.175 lower. Lean Hog futures firmed Wednesday in the face of negative outside markets. While that may be a sign the market is in the process of finally putting in a low, futures have been beaten down lately and are in need of a corrective bounce.
Price action in the Cattle pits were choppy today, but traders viewed early weakness in live Cattle as a buying opportunity and futures closed 0.35 to 0.825 higher. Feeder Cattle closed mixed. Early weakness in live Cattle as tied to negative outside markets, as recent elections in France and Greece, along with heightened banking sector concerns in Spain, put economic recovery efforts into question.
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.