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US Grains saw a solid rally Wednesday; rain markets posted solid gains Wednesday, though Corn and Soybeans did not see a turn back to up trends. Some renewed commercial buying was seen in both
markets as traders took advantage of the recent sell-off. Outside markets were mixed, with the USD index falling during most of the session

Wheat futures assumed more of a leadership role Wednesday. The market rallied into the close to end with gains in the upper teens to low 20′s in most contracts at all 3 locations. Wheat futures enjoyed corrective Short-covering today on ideas the downside has been overdone and from help of friendly outside markets. Strong gains in the Soybean market provided spillover support

Corn futures finished 13.0 to 16.5 cents higher in the Dec through Jul contracts, which was near session highs. Far-deferred months were mostly 6.0 to 8.0 cents higher. Corn futures rebounded today on ideas recent losses were overdone despite heavy pressure on Crude Oil futures. In addition to Short-covering, there was some bargain buying, with some of that tied to strength in Gulf basis. Commercials were noted buyers on the day.

Soybean futures extended gains around midday and posted a high-range close to finish 20.75 to 30.0 cents higher. Soymeal and Soyoil saw strong spillover support. Ideas recent losses were overdone spurred Short-covering overnight and traders extended gains as the USD weakened this morning as they digested the move by the Bank of Japan to provide more stimulus for its economy.

Lean Hogs futures favored a firmer tone throughout the day amid short-covering and ended 45.0 to 90.0 cents higher, which was near session highs. Futures extended the rally from their contract lows as traders say there is mounting evidence the worst is behind in terms of heavy Pork production. The cash Hog market was mostly $1 higher today as packers were willing to dip into profitable margins to secure needed supplies.

Cattle futures were choppy to lower for much of the session, but firmed into the close to finish slightly higher in all but the front-month Oct contract. Uncertainty over this week’s cash Cattle trade triggered the cautious tone in live Cattle futures Wednesday. While traders sense a short-term top in the cash market may be near, boxed Beef prices continue to charge higher and showlist supplies are tighter than a week-ago.