Corn futures are trading 1 to 12 cents lower midmorning. Corn futures declined in the overnight session on profit taking and position squaring in the market. The market is seeing pressure from weakness in the outside markets, both the Dow index and crude oil markets are trading lower. Corn futures are currently driven by the weather. Forecasts for continued dryness and high temps across the U.S. Midwest over the next 10 days should limit losses.
Soybean futures are trading mixed midmorning. Market prices continue to ease from morning levels. Spillover pressure from the corn and wheat markets are pulling soybean prices lower in addition to bearish outside markets. Firm international demand and concern that the 2012/13 soybean crop will be lower than anticipated due to dry conditions should support new crop contracts. Traders will keep an eye on the weather as forecasts for warmer temperatures across the Midwest have not changed.
Wheat futures are trading mixed at midmorning. Trade in both the CBOT and KCBT are lower compared to the MGE. Chicago and Kansas City trade is 1 to 3 cents lower, while MGE is up by as much as 8 cents. Wheat futures turned lower as the corn market dipped on profit taking and the dollar index increased. Weakness in outside markets is adversely affecting wheat prices as well.
Cattle futures are trading mixed midmorning. The market is trading volatile ahead of Friday’s Cattle on Feed report. Earlier the market was trading higher on short covering and higher boxed beef prices. Trade in the cash market remains quit with a few isolated bids. Trade is anticipated to pick up Thursday – Friday with cash prices steady to higher than the previous week.
Lean hog futures are trading 30 cents higher midmorning. Hog futures are supported by higher wholesale pork prices and declining hog weights. Market ready supplies still remain tight and will support the market; however cash prices are expected to ease from recent highs over the past few weeks. Trade in the cash market today is expected to be steady.