Corn futures are trading higher midmorning. Corn futures continue to move higher after the release of the October WASDE estimates. USDA lowered corn production only 21 million bushels to 10.704 billion bushels. The October production estimate approximately 100 million bushels above trade expectations. Corn yields were lowered as well to 122 bushels per acre, slightly below trade expectations. Prices responded positively as world and domestic ending stocks were lowered versus the previous month. December corn is trading 34 ½ cents higher.
Soybean futures are extending gains post WASDE. Soybean futures are sharply higher at this hour despite bearish estimates for 2012 crop production. USDA raised 2012 soybean production 226 million bushels to 2.86 billion. Yields were also raised. The average yield was pegged at 37.8 bushels per acre up 2.5 bushels per acre versus the September estimate. However, prices are supported by tight ending stocks forecasts. As with the corn, soybean futures surged as a means to ration demand/use. November soybeans is trading 37 ¾ cents higher.
Wheat futures are soaring midmorning. Spillover strength from corn and soy complex is boosting wheat futures amid a neutral supply/demand report. Production estimates were relatively unchanged from the previous month, while domestic ending stocks were pegged a little above trade expectations. Foreign production was cut as expected. Total production declined 5.7 million tonnes, with sharp cuts in Australia and Russia. December wheat at CBOT is trading 17 cents higher; KCBT is trading 20 ¾ cents higher; and MGE is trading 14 cents higher.
Live cattle futures are trading higher midmorning. Buying interest has picked up in the cattle complex despite mixed wholesale beef prices. Futures are advancing higher on expectations for steady to higher cash trade this week, although cash movement has yet to develop. Also sharp gains in corn prices are strengthening deferred contracts. October cattle is trading 77 cents higher while December is trading 7 cents higher.
Lean hog futures are trading mixed midmorning. Nearby 2012 contracts are trading defensively between 17 to 70 cents lower. Cash prices are reported as steady and futures are supported by strength in the pork carcass value. The market is currently underpinned by strong demand as October is Pork Month. Deferred contracts have firmed on surging corn and soymeal prices.