Crop and livestock futures trading lower on Wednesday

Corn futures are trading solidly lower at midday. A broad base sell-off in commodity markets are being driven by strength in the dollar index and weakness in the stock market due to continued concern about European debt. Sharp losses in crude oil futures are also weighing on futures. Lackluster export demand is also a bearish factor as global grain supplies are providing much competition. December is 11 1/2 cents lower at $5.77 and March is 13 cents lower at $5.81 1/2.  

Soybean futures are sharply lower at midsession. Strength in the dollar and weakness in the stock market are triggering fund long liquidation in the soybean market. The dollar index has hit an 11-month high against eh euro on further concern about the European debt crisis. Losses in crude oil futures are also pressuring the soy complex. NOPA crush for November was reported at 141.2 million bushels, which was below pre-report trade estimates. January is 21 1/2 cents lower at $10.97 and March is 21 1/2 cents lower at $141.07 1/2.    

Wheat futures are strongly lower at midday. Strength in the dollar index and weakness in the stock market has led to a broad based sell-off in commodities. Export demand for U.S. wheat is already sluggish and a stronger dollar will make supplies even less competitive. Global supply and demand fundamentals remain bearish and the U.S. continues to lose export market share to cheaper wheat primarily from the Black Sea region. CBOT March is 14 1/2 cents lower at $5.86, KCBT March is 14 1/2 cents lower at $6.41 1/2 and MGE march is 12 1/4 cents lower at $8.17 3/4.   

Cattle futures are trading lower at midsession. Outside market pressure is weighing on the futures market. Weakness in the stock market is being driven by further concern about the European debt crisis. Cash trade has not yet developed this week, but expectations are for lower trade. Packer processing margins remain bad despite some recent improvement in boxed beef prices. December is 50 cents lower at $117.40 and February is 53 cents lower at $118.13.

Lean hog futures are lower at midday. Strength in the dollar index and weakness in the stock market are weighing on commodity markets. However, front end losses are being limited by the 66 cent jump in pork cutouts on Tuesday. October pork exports were strong, but there is concern about the lack of export demand from China recently. December is 18 cents lower at $85.63 and February is 20 cents lower at $86.20.