Corn futures are trading 12 to 13 cents lower at midsession. Prices are lower as the market consolidates but prices have the potential to turn higher as the trade expects further damage to corn crops as Hurricane Isaac moves across the Midwest. Although prices are well below recent record highs, long term bullish fundamentals will limit downside momentum.
Soybean futures are trading 13 to 16 cents lower at midsession. Profit taking ahead of the holiday weekend has soybean futures on the defensive along will the overall pull back in the grain complex. November soybean contract hit a new high of $17.80 ¾ on Thursday but is now trading off by about 30 cents. Long term bullish fundamentals will continue to support higher market prices as well as the lower dollar index.
Wheat futures are tumbling at midsession. Wheat futures are posting double digit losses across all three exchanges despite higher outside markets and a lower dollar index. Market sell offs are primarily the result that Russia does not plan to implement any restrictive measures for wheat exports despite continual reductions to output estimates. Chicago is trading 21 cents lower; KCBT is trading 18 cents lower; and MGE is trading 15 cents lower.
Live cattle futures are trading higher at midsession. Cattle futures are higher across the board with the exception of the December contract. Futures are supported by higher cash prices during late trade on Thursday. Prices were reported as higher in the North and steady prices in the South. Traders expect cash trade to find continued momentum this morning as packers secure their needs before the Labor Day holiday.
Lean hogs futures are moderately lower at midsession. Currently, 2012 contracts are trading off 40 to 50 cents. Market prices continue to fall and plentiful pork supplies drag cash prices lower along with sluggish demand. Lower cash prices and plummeting cutout values will keep the market on the defensive most of the session.