Agriculture commodities lower at midday
Corn futures are trading lower at midday. Corn futures are adding to losses on another week of disappointing export sales. This week’s export sales totaled 142,300 tonnes, below the lower range of trade expectations. Strength in the outside markets should limit losses, but recent gains in the dollar index could offset that support. December corn is trading 6 ½ cents lower.
Soybean futures are following the other grain markets lower at midsession. Soybean futures have also moved lower this morning despite additional strong export demand. USDA reported export sales of 120,000 metric tonnes of soybeans to an undisclosed location during the current marketing year. This week’s export sales totaled 522,200 metric tonnes slightly below analysts’ expectations but larger than the previous week and supportive for prices. November soybean futures are trading 10 cents lower.
Wheat futures remain under pressure at midday. Wheat futures jumped over 2 percent on Wednesday after Ukraine confirmed the implementation of a wheat export ban starting next month. In spite of this prices turned lower during the overnight session. However, the market has managed to trim losses thanks to higher than expected weekly export sales. Total sales were reported at 572,000 tonnes. Outside markets are higher, but the dollar index is gaining strength and will keep prices in check.
Live cattle futures are posting sharp losses at midday despite supportive fundamentals. Cattle futures opened pit trade higher, supported by firm wholesale beef demand and good export demand for beef products. Weekly export sales totaled 16,600 tonnes, 15 percent higher than the previous week. Although cash trade has not developed, traders remain enthusiastic that cash trade will be steady to higher this week. October cattle futures are trading 20 cents lower.
Lean hog futures are trading lower at midday. Weakening fundamentals and market uncertainty are weighing on futures prices. The pork carcass value continues to unravel, with ham cutouts dropping over six dollars on Wednesday. Packer margins are good but processors are expected to lower bids, resulting in lower cash prices. December futures are trading 50 cents lower.