Corn futures are trading 7 cents lower at midday. Long liquidation and bearish export sales data are keeping corn prices on the defensive. Outside markets are lower as the EU debt crisis once again rears its head, causing investors to liquidate risky assets. The higher dollar index is also bearish for prices, making exports less competitive on the global market. Weekly export sales came in on the lower end of expectations at 178,500 tonnes.
Soybean futures are trading 17 to 20 cents lower at midday. Soybean futures are experiencing the most volatility of the grain complex. Fundamentally, the market is sound on firm demand and tight supply. Weekly export sales were indeed bullish with yearly sales of 1.41 billion bushels exceeding USDA’s projection of 1.34 billion bushels. Supply is anticipated tighten even further as production estimates for the current crop are expected to fall short. However, the recent downturn in stock markets this morning tied to EU debt worries is placing downward pressure on soybean futures.
Wheat futures are trading 5 to 12 cents lower at midday. There is not much fresh news concerning the wheat market. Weakness in the grain complex and outside markets coupled with the higher dollar index are battering wheat futures. With spring wheat harvest advancing as it is prices at MGE may be on the defensive throughout the session. Traders continue to monitor overseas wheat production as Russian officials have once again lowered production estimates to fall between 70 – 75 million metric tonnes.
Live cattle futures trading lower at midday. Midsession futures prices are lower, pressured primarily by cash market uncertainty and lower wholesale beef prices. Currently cash trade seems to be at standstill with movement expected to pick up as late as Friday. Asking prices remain firm at $118 in the South and $185 in the North. However, losses should be limited by improved beef exports sales. This week sales are 1,200 tonnes higher at 15, 800.
Lean hogs are trading lower at midday. Hog futures opened higher as the pork carcass value surged only to fall back on outside market pressure. Outside markets tumbled as hopes for a solution to the EU debt crisis dwindle; provoking investors to sell off risky assets such as agricultural commodities. Declining corn prices and anticipated lower cash prices are also bearish for the market today.
Cotton futures are trading mixed but mostly lower at midsession. The reversals in outside markets are currently weight on cotton futures. Deferred contracts turned lower on disappointing news concerning a resolution to the EU debt fiasco.