Corn futures are trading mixed at midday. The front month contract is posting slight gains as traders swapped December contracts for July. Forecasts for rain across the U.S. Corn Belt are weighing on the market; however, if conditions remain dry as they are currently, prices will rise again. The market is still pressured by Tuesday’s bearish Supply/Demand report. Old crop ending stocks were reported higher than expected; there were no revisions to new crop estimates. Old crop exports were reported down 50 million bushels from the previous month.
Soybean futures are trading 25 to 29 cents lower at midday. Soybean futures are tumbling after posting moderate gains yesterday due to global economic concerns. Market prices are under pressure due to slower than anticipated economic recovery in China, the world’s largest soybean importer. Market fundamentals remain strongly bullish for the soybeans. USDA trimmed both old crop and new crop ending stocks thanks to strength in the export market. Tighter supplies and firm demand should limit losses during today’s trade.
Wheat futures are trading 1 to 3 cents higher midmorning. Wheat futures are holding steady while the corn and soybean markets decline. The market is reacting to the Australian government’s reduction in its 2012/13 wheat outlook. This could amount to greater demand for U.S. wheat. However, USDA reported forecasts for winter wheat output at 1.684 billion bushels, topping analyst’s estimates, and possibly limiting gains.
Cattle futures are trading $1 lower at midday. Cattle futures are plummeting due to setbacks in the stock and equity markets and global economic pressures. Declining beef prices are weighing on the market also. Cash trade is relatively quiet. Packer margins remain favorable and cash trade is expected to pick up towards the latter part of the week with steady to higher prices. Asking prices are around $124 in the South and $198 plus in the North. Weakness in the dollar index should lend support to prices.
Lean hog futures are trading mixed at midday. The market is trading slightly lower but mostly higher midmorning. Prices are seeing continued support from higher cash prices and shrinking supplies. Pork cut-out value is up again along with seasonal demand for pork products. USDA reported the cut-out up 91 cents at $88.30. Spillover pressure from the live cattle and outside markets are weighing on the hog futures.