Weekend rain weighs on corn markets at midday

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Corn futures are trading 4 to 14 cents lower at midday. Corn futures began trading lower overnight and into the morning. Calls for weekend rains across the U.S. Midwest, profit taking, and long liquidation of the July contract are currently weighing on the market. Weakness in the dollar index and higher outside markets should limit losses.

Soybean futures are trading mixed to at midday. The market is trading sideways as USDA reported cancellations of 147,000 tonnes of soybeans to China for the 2011/12 marketing year, weighing on the old crop contracts. However, USDA also reported new sales totaling 382,000 sales, of which 262,000 tonnes were sold to China for 2012/13 marketing year. Higher outside markets and the declining dollar will lend support to prices.

Wheat futures are trading 4 to 7 cents lower at midday. Wheat prices are down despite bullish export sales and improved fundamentals. Yesterday, USDA reported exports sales of 110,000 tonnes of soft red winter wheat to China for delivery in 2012/13. This week, both China and Australia have reduced their wheat production estimates, which should lend support to the market and possibly increase demand for U.S. wheat.

Cattle futures are trading mixed but mostly lower at midday. Cattle futures are pressured by increased supply and lower cash prices. Prices are seeing support from the rise in the choice cutout on yesterday and slight short covering in the market. Beef demand was also reported as fairly good with moderate movement. The lower dollar index should be friendly to prices today.

Lean hog futures are trading lower at midday. Hog futures are trading lower mostly due to profit taking. Market losses will be limited by tight supplies. Weekly slaughter is anticipated to be below 2,000 head. Higher wholesale pork prices are also bullish for the market. USDA reported Thursday’s cutout up $2.35 at $91.58. Trade in the cash market remains solid, with prices 50 cents to $1 higher.



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