Corn futures are trading 13 cents lower at midsession. Prices continue to decline on profit taking after hitting record highs on Friday. Spillover pressure from the soy market is also weighing on corn futures. The dynamics of the market remains unchanged and will continue to see support from bullish fundamentals. Trade is awaiting this afternoon’s crop progress report where corn condition ratings are anticipated to be unchanged at 23 percent good to excellent.
Soybean futures are trading 36 to 39 cents lower at midsession. Prices are being pressured by a combination of profit selling and non-commercial long liquidation. The market remains fundamentally bullish; strongly supported by Friday’s WASDE report. The report pegged soybean yields the lowest in 9 years at 36.1 and production at 2.692 billion bushels. Also, weekend rains across the Midwest are expected to have helped new crop soybeans. Analysts are projected a one percentage point increase in the soybean good to excellent ratio, raising ratings to 30 percent.
Wheat futures are trading 16 to 17 cents lower at midsession. Wheat futures continue to spiral downward, posting double digit losses across all there exchanges. Based on the recent supply/demand estimates released by the USDA, the market’s outlook is more bearish than expected. However, traders are concerned that USDA did not lower global ending stocks enough considering the serious adverse weather conditions in key production regions. Losses should be limited as global wheat stocks continue to fall.
Live cattle futures are trading higher at midsession. Higher cash prices are currently underpinning live cattle futures. Cash market trade finally picked up late Friday afternoon with prices $1-$3 higher than the previous week as packers gear up for Labor Day weekend. Surging boxed beef prices are supportive for prices today. Friday’s closing prices were $2.43 higher for choice cuts and $1.02 higher for select. Higher outside markets and the lower dollar index should be friendly for prices as well.
Lean hog futures are trading higher at midsession. Hog futures are rebounding at midday, posting sharp gains of over $1 across 2012 contracts. Lower cash prices and the pull back in the grain markets weighed on the market initially but spillover strength from the cattle complex is helping spark buying interest in the hog market. However, sluggish demand for pork products, expressed through lower pork cutouts, has the potential to limit market gains.