Corn, soybean futures sink at midday

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Corn futures are trading 14 to 15 cents lower midmorning. Corn prices remain lower midmorning, although showing slight improvement from earlier losses. Prices are lower as the market readjusts given the extent of the rally in grain prices over the last two weeks and disappointing jobs data that led to lower outside markets. Forecasts for continued hot dry conditions across the Midwest into the week have not changed; leaving the market with room to bounce back.

Soybean futures are trading 1 to 15 cents lower midmorning. The decline in soybean futures is the result of the market readjusting to strong rallies in the grains markets over the last few weeks and lower outside markets. Disappointing U.S. jobs data sent outside markets plunging, sparking rounds of liquidation across commodities. On the bright side, soybean prices should see support from export sales and severe drought conditions across the Midwest. USDA reported the sale of 120,000 tonnes of soybeans to China for 2011/12 marketing year.

Wheat futures are trading 8 to 22 cents lower midmorning. Wheat futures are tumbling at midday as corn prices declined and weak U.S. jobs data provoked rounds of speculative selling across commodities. The wheat market is technically overbought and traders may look to take profits if prices continue to decline throughout the session. In the long run, prices should see additional support from lower production estimates within the Black Sea Region due to drought conditions.

Cattle futures are trading mixed midmorning. Cattle futures are trading sideways at midday on several key factors. Short covering, short bought packers, and firm export demand are lending support to market prices. However, disappointing jobs data led to lower outside markets, which is currently weighing on commodity prices. The market is awaiting cash cattle trade to pick up. Preliminary asking prices are about $120 in the South and $190 in the North.

Lean hog futures are trading higher midmorning. Hog futures are trading higher on short covering despite lower outside markets and plummeting pork cutout values. The pork cutout value was reported 92 cents lower on Thursday at $90.64. However, steady cash trade and the decline in the grain markets are supporting prices today.



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