Market Recap: Soybean Futures Take a Beating on Profit-Taking
CME lean-hog futures ended mixed. August lean hogs closed down 25 at 98.92, while October lean hogs closed up 3 to 86.625. Traders are expecting the gap between August and October lean hogs to narrow as August approaches expiration.
U.S. live-cattle futures ended lower as the market remains range-bound amid sluggish beef demand and a lack of direction from the cash market.
August live cattle ended down 32 to $121, October live cattle fell 22 to $125.
Soybean futures tumbled 4.8%, declining by the exchange-imposed daily limit, as a wave of sales of the oilseed by U.S. farmers weakened prices in cash markets. Corn futures were pulled lower by the decline in soybeans. Wheat futures followed corn and soybeans lower.
August Soybeans dropped 70 –the maximum move allowed in a single day—to $13.92, September corn futures fell 14 1/4 to $5.08, September wheat in Chicago fell 1/2 to $6.53, and the KC September wheat contract fell 1 3/4 to $6.97.
Cotton futures saw marginal gains on Wednesday due to perceived improved weather in the Texas plains. October cotton gained 15 to 86.16, and December new crop gained 7 to 85.74.
Gold fell Wednesday as stronger economic data bolstered the dollar and fanned worries about the end of U.S. monetary stimulus measures.
August gold plunged $15 to $1,319.70, September silver closed at $20.02, down 23.4.
Crude-oil futures skidded Wednesday after a modest decline in domestic oil inventories gave traders an opportunity to book profits.
September crude dropped $1.84 to $105.39 a barrel, August gasoline fell a fraction to $3.05 a gallon, and August distillates fell 2.23 cents o $3.04 a gallon.
Natural gas futures finished lower Wednesday as traders staked out positions a day before a closely watched report on U.S. gas stockpiles. August Natural gas fell 4.5 cents to $3.69.
On Wall Street, stocks fell on Wednesday, retreating further from their record highs on disappointing results from several top companies, while stronger-than-expected U.S. and European factory data spurred selling in safe-haven U.S. and German government debt, sending their yields higher. The Dow fell 25 to 15,542, the Nasdaq gained a fraction to 3,579, and the S&P fell 6 to 1,685.