Crop and livestock markets rally

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Corn futures are strongly higher at midday. Futures are being supported by worries that hot and dry weather could trim yields in some of the corn crop as the crop is trying to pollinate. Forecasts show hot and dry weather this weekend extending into most of next week. Strength in the stock market and crude oil and weakness in the dollar are also supportive factors. September is 21 1/2 cents higher at $6.85 1/2 and December is 18 1/2 cents higher at $6.76 1/2.   

Soybean futures are solidly higher at midsession. Traders are adding weather premium into the market. While August is the critical time for soybean reproduction, forecasts for hot and dry weather next week could trim some yield potential. Spillover support from corn and strength in the stock market and crude oil are also bullish factors. August is 16 3/4 cents higher at $13.72 1/4 and November is 18 cents higher at $13.76 1/4.  

Wheat futures are trading strongly higher at midday. Outside markets and spillover support from corn are helping rally the wheat markets. The CBOT is leading the gains on ideas that higher corn prices will lead to more SRW use in feed rations. Weakness in the dollar is a supportive factor and is a positive factor for U.S. exports. CBOT September is 30 cents higher at $7.02, KCBT September is 15 1/4 cents higher at $7.48 1/4 and MGE September is 11 cents higher at $8.04. 

Cattle futures are trading solidly higher at midsession. Futures are being supported by strength in beef prices, outside markets and rising corn prices. The stock market is strongly higher this morning while the dollar index is lower. Choice beef prices were up $1.69 and select cuts were $1.91 higher. Beef exports continue to run at a record pace and through the end of May beef exports are up 27% compared to last year. August is 58 cents higher at $114.60 and October is 95 cents higher at $102.90.

Lean hog futures are strongly higher at midday. Strength in the cash market and continued talk of increased export sales of pork to China are supporting prices. Report on Tuesday indicated that China has purchased or will buy about 130 million pounds of U.S. pork from August through October. Rising corn prices are also a bullish factor for the futures market. August is $1.98 higher at $99.90 and October is $1.50 higher at $93.70.



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