Corn futures are trading 5 to 8 cents lower at midday. Corn futures continue to slide lower on pressure from the bean market induced by heavy weekend rains across the Midwest. The 2012 corn crop is not expected to benefit much from the recent rains and so pressure surrounding the market is mostly due to speculative selling. Analysts are expecting today’s crop progress report show corn condition ratings 1 percentage point lower at 23 percent good/excellent. The long term fundamentals are unchanged and bullish as production output is expected to decline quite a bit due to drought conditions.
Soybean futures are trading 30 to 32 cents lower at midday. Soybean futures are posting moderate losses at midday as favorable weekend rains revived drought stricken crops. Analysts are estimating only a slight decline of 1 percentage point to the soybean crop condition rating today. As with corn, the longer term outlook remains bullish as production yields are still expected to decline and demand for U.S. soybeans remain firm. Today, USDA reported export sales of 160,000 tonnes to China for 2012/12 delivery.
Wheat futures are trading 2 to 4 cents lower at midday. The downturn in the wheat market is primarily due to spillover pressure from moderate losses in the soybean market. All three exchanges are trading lower, but not to the extent of the losses incurred in both the corn and bean markets. Fundamentally, the market is growing more bullish as production reductions in key wheat producing countries continue to roll in, which will support prices in the future.
Live cattle are trading 15 to 42 cents higher at midday. Cattle futures are higher bucking pressure from weakness in the grain complex and lackluster beef prices. Price support is tied to expectations for higher cash prices this week and fewer cattle on pasture due to drought conditions across the U.S. However, prices are still susceptible to a down turn if hog futures post moderate losses as was the case on Friday.
Lean hogs are trading mixed but mostly lower at midday. Market prices are trading lower on follow through selling and lower cash prices. Cash prices are reported up to 50 cents to $1 lower at some terminals. However, pork cutouts were reported 37 cents higher at $93.15, which should ease market pressure.