Corn futures are trading 2 to 3 cents higher at midday. Prices are trading very volatile at midsession, trading both sides of unchanged on slight profit taking and long term fundamentals. The market remains firmly underpinned by the tight supply situation facing the 2012/13 corn crop, however weakness in bean market has the potential to pulled prices lower.
Soybean futures are trading mixed at midday. Soybeans futures tried to pull ahead early morning but were checked by non commercial selling. Long term supply/demand fundamentals remain intact and will support futures prices going forward, however volatility in the market is not expected to subside anytime soon. Recent weather trends have been beneficial for the new crop as indicated by a one percentage point increase in the crops good/excellent ratio, but the overall 2012/13 crop remains in poor condition.
Wheat futures are trading 4 to 12 cents lower at midday. Wheat prices are tumbling as news the Egypt purchased another round of wheat from countries in the Black Sea Region. Eygypt is the world’s largest wheat buyer and purchased 120,000 tonnes of wheat from Russia and Ukraine on Tuesday after purchasing 120,000 tonnes from Russia last week. Instability in the other grain markets along with a higher dollar index are weighing on wheat futures as well.
Live cattle futures are trading 23 to 50 cents lower at midday. Cash market uncertainty and profit taking are currently weighing on cattle futures. Although traders anticipate higher cash prices again this week, minimal movement has taken place thus far. However, higher wholesale beef prices and firm beef demand are limiting market losses.
Lean hogs futures are trading mixed but mostly lower at midday. Hog futures are plummeting at midday as traders lock in profits against yesterday’s market gains. October is currently underpinned by its discount to the lean hog index while deferred contracts are pressured by volatility in the corn market. Cash trade is called steady at best and should limit losses.