Corn futures are trading sharply lower at midsession. Improved crop weather in the Corn Belt and news that China was again raising its bank reserve requirements in an attempt to slow inflation are pressuring the market. Crop conditions as of Sunday were pegged at 69% good-to-excellent, which was slightly above expectations and the ten-year average of 68% for this time of year. Weather this week is expected to help conditions improve this week. Corn is sharply lower despite weakness in the dollar and strength in the stock market and crude oil. July is 28 cents lower at $7.54 1/2 and December is 24 cents lower at $6.80 1/2.
Soybean futures are trading solidly lower at midday. The market is being pressured by improved weather for crop development in the Midwest this week, spillover weakness in corn and news that China was raising bank reserve requirement to try to slow inflation. In its initial crop rating of the season, USDA estimated at 67% good-to-excellent, which is above the long-term average but below last year’s rating for this time of year. When technical support was broken, losses were extended. July is 18 cents lower at $13.64 3/4 and November is 17 3/4 cents lower at $13.59.
Wheat futures are strongly lower at midsession. Spillover pressure from corn, expanding winter wheat harvest into Kansas and improved crop weather for the wheat crop in Europe are weighing on futures. Early harvest reports show poor yields in the southern Plains, but good quality. USDA estimated the crop was 22% harvest as of Sunday compared to the ten-year average of 14%. The MGE is lower despite continued planting delays. Spring wheat condition ratings last week were 68% good to excellent, 4% below the ten-year average. CBOT July is 17 1/2 cents lower at $7.25, KCBT July is 17 cents lower at $8.34 and MGE July is 16 cents lower at $9.69 1/4.
Cattle futures are trading mixed at midsession. Futures are finding some support this morning from firm boxed beef prices on Monday, ideas of steady to firm cash trade this week and strength in the stock market. However, gains have been limited and futures have been lower at times on spillover pressure from weakness in corn. Sharp losses in corn could lead to additional cattle feeding. August is 53 cents higher at $104.55 and October is 13 cents higher at $110.85.
Lean hog futures are mixed at midday. Some contracts are being supported by strength in the stock market, the 67 cent jump in pork cutout values and steady to firm cash markets. Cash hog prices were steady to firm this morning as packers as most packers are short-bought and in need of supplies. But futures deeper deferred contracts are being pressured by weakness in corn that could lead to increased pork production. July is 40 cents higher at $93.93 and August is 43 cents higher at $92.80.