Corn futures are trading 3/4 to 3 cents lower at midsession. Corn futures remain under pressure on profit taking and bearish data concerning ethanol production and stocks. However, news that the 2012 corn crop is in very bad condition should lend support to market prices. Drought conditions across the Midwest remain supportive as well as speculation that average corn yield is below USDA estimate of 146 bushels per acre.
Soybean futures are trading 3 to 14 cents higher at midsession. Soybean futures are being pulled higher by strength in the soymeal market and tight supply worries. Soymeal contracts are currently trading 4 to 9 cents higher at midday. Adverse weather conditions across the Midwest remain supportive for corn and soy prices. However, the market is thought to be in an overbought position and speculators may look to liquidate positions, adding additional pressure to the market.
Wheat futures are trading lower at midsession. Wheat futures remain under pressure at midsession as corn prices continue to trade volatile. Weakness in the corn market and the higher dollar index may leave the market susceptible to rounds of liquidation throughout the day session. On the other hand, growing concern pertaining to wheat reductions in Russia and tight global wheat stocks should lend some support to market prices today. Trade at CBOT is down 4 cents, KCBT is down 3 cents and MGE is down 4 cents.
Cattle futures are trading sharply higher at midsession. Cattle futures are trading $2.17 to $2.00 higher on market short covering and weakness in the corn market. Higher boxed beef prices also aided in the market rebound today. Tuesday’s boxed beef prices were estimated higher than 60 cents for both choice and select cuts. Despite the upswing in cattle futures, cash prices are still anticipated to be lower as packers are faced with plentiful supplies
Lean hog futures are higher at midsession. Lean hog futures are on the upswing due to higher wholesale pork prices and futures discount to cash. Market prices are up $1.77 (August) to $1.33 (October) at midday. Weakness in corn prices is providing relief to hog futures also, however gains may be short lived if corn prices turn higher again. Although cash prices are currently higher than futures, cash trade remains steady to lower at midday.