Corn futures are trading 16 to 19 cents higher midmorning. Corn prices continue to climb as weekend elections in Greece uplifted outside market indexes, which is favorable for all commodities. New crop contracts are strengthened as dry weather concerns have returned. Crops are expected to see stressful conditions over the next 7 to 10 days as temps across the Midwest are forecasted to increase. The crop progress report is expected to be bullish for the market with analysts calling for a 2 percentage point decline in the corn condition rating.
Soybean futures are trading 10 to 16 cents higher midmorning. The soybean market is underpinned by strong supply/demand fundamentals. The market is trading higher as tensions concerning the EU debt crisis are easing due to this weekend’s Greek election of the pro-bailout political candidate. New crop contracts are seeing additional support from dry weather forecasts across the U.S. Midwest. Corn and soybean crops are considered to be stressed from recent weeks of dry conditions. Analysts have polled a 2 percentage point decrease in the soybean condition rating.
Wheat futures are trading 15 to 21 cents higher midmorning. The market is being lifted by the rallies in both the corn and soybean markets. Weekend elections in Greece proved favorable for all commodities in general. The winter wheat market is seeing new support as dry conditions persist globally. Both China and Australia reduced their wheat production estimates, which should lend support to the market and possibly increase demand for U.S. wheat. However, long term fundamentals remain bearish.
Cattle futures are trading 30 to 60 cents higher midmorning. Cattle futures are up due to market short covering after last week’s sharp losses. The market is seeing additional price support as retailer restock shelves after Father’s day weekend. However, weakness in boxed beef prices will weigh on futures prices. Trade in the cash market is expected to be steady.
Lean hog futures are trading $1 to $2 higher midmorning. Hogs futures are soaring as ready supplies of barrows and gilts tighten, increasing the expectation for higher prices in the cash market. Currently, fundamentals of the market remain favorable for prices. Steady pork demand and higher pork cutout prices are boosting futures prices as well. Trade in the cash market is called 50 cents to $1 higher.