Weather woes pressure corn, soybean futures

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Corn futures are trading 32 to 40 cents higher at midday. Hot weather forecasts are currently driving market prices. The December contract reached the 40 cent daily limit in early morning trade as concerns about yield reductions mount. The trade is expecting to see another decline in crop condition ratings in today’s weekly crop progress report.

Soybean futures are trading 47 to 58 cents higher at midday. International demand and hot weather forecasts are boosting market prices. The USDA has reported export sales of 120,000 tonnes of soybeans to China for 2012/13 delivery adding an additional lift to already surging new crop prices. Traders are expecting today’s crop progress report to be bullish for prices after dry conditions over the weekend are likely to spark another round of reductions for crop condition ratings. 

Wheat futures are trading 39 to 48 cents higher at midday. Wheat futures are being pulled higher on spillover support from the other grain markets. Long term outlook for the market is turning more bullish as global wheat production estimates decline. Recent reductions in Russian and Australian wheat crop estimates are expected to incite the USDA to lower world production and ending stocks in next month’s supply/demand report.

Cattle futures are trading 60 to 95 cents lower at midday. The market is being pressured by surging corn prices and higher than expected May placements and lower than expected marketings. Friday’s Cattle on Feed report showed May placement up 15 percent, which topped analysts’ expectations of a 14 percent increase. USDA’s cold storage report was also bearish for cattle showing frozen beef stocks up more than 11 percent from the previous year. Trade in the cash market is called steady to lower.

Lean hog futures are trading mixed at midday. Hog futures are trading both sides of the market at midday on pressure from Friday’s bearish Cold Storage report and lower outside markets. USDA reported frozen pork stocks were 16 percent higher than the previous year at 636 million pounds. However, the market is seeing support from higher pork cutout prices along with steady cash prices as a result of shrinking supplies. Friday’s pork carcass value was reported at $2.35 cents higher, closing over $100. Cash trade is expected to remain steady.



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