CBOT crop markets higher at Midsession

Corn futures are trading higher at midsession. The market is being supported by strong weekly export sales, weakness in the dollar index, firm crude oil prices and strength in the cash market. USDA reported export sales last week at 40.9 million bushels, which was above trade expectations and the largest amount in three months. The Fed’s announcement for low interest rates to continue into 2014 weighed on the dollar index, which is supportive for commodities. CBOT March is 6 1/2 cents higher at $6.41 and May is 5 3/4 cents higher at $6.46. 

Soybean futures are solidly higher at midday. Weakness in the dollar index and strength in equities and crude oil are supporting the market. Futures are higher despite some relief in South America from hot and dry conditions. Also, weekly export sales of 21.8 million bushels fell below the range of pre-report trade expectations. CBOT March is 14 1/2 cents higher at $12.28 and May is 14 cents higher at $12.36 3/4. 

Wheat futures are trading higher at midsession. Wheat markets are following the rally in commodities due to weakness in the dollar index and strength in equities markets. Additional support is coming from the threat of cold temperatures this weekend damaging some of the crop in the former Soviet Union due to the lack of snowcover. Weekly export sales reported this morning of 22.7 million bushels. CBOT March is 15 cents higher at $6.56 1/4, KCBT March is 11 1/4 cents higher at $7.08 3/4 and MGE March is 11 1/4 cents higher at $8.24.  

Cattle futures are trading strongly lower at midday. The market has turned lower despite outside market strength and rising boxed beef prices. Cash trade has not developed yet this week. Poor packer processing margins could prevent further gains in the cash market, but many are still expecting steady to firm trade this week as market ready cattle supplies remain tight. Losses could also be attributed to positioning ahead of the Cattle Inventory report due out Friday afternoon. February is 98 cents lower at $124.88 and April is $1.08 lower at $128.10.

Lean hog futures are trading mostly lower at midsession as cash fundamentals are mostly bearish. Pork cutouts were down 56 cents on Wednesday and some cash markets turned lower. Packer margins are poor and there could be an effort to push cash bids lower to improve margins. Large slaughter numbers have put and ample pork supplies continue to weigh in the cutout market. February is 13 cents lower at $86.50 and April is 98 cents lower at $87.25.