Corn futures are trading higher at midsession. The market opened lower on outside markets and spillover pressure from the Supply/Demand report last week. Strength in the dollar and weakness in the stock market and crude oil are being driven by continued concern over the euro-zone debt crisis. However, short-covering has developed to help push futures higher at midday. March is 2 cents higher at $5.96 1/4 and May is 1 3/4 cents higher at $6.04 3/4.
Soybean futures are steady to higher midday. The market was initially pressured by outside markets and the larger than expected increase in USDA’s ending stocks estimate last Friday. The stock market is trading lower while the dollar index is higher on more concern about the European debt problems. But short-covering from recently losses are helping push prices higher. Some concern is beginning to grow about dry areas developing in Brazil. January is 1 cent higher at $11.08 and March is 2 cents higher at $11.18 1/2.
Wheat futures are mixed at midsession. The CBOT has bounced slightly on short-covering and bargain hunting from recent losses. But the KCBT and MGE are still lower on outside market pressure and sluggish export demand. Strength in the dollar index will make U.S. wheat less competitive on the global market. USDA already lowered its U.S. export forecast by 50 million bushels last month. CBOT March is 5 1/4 cents higher at $6.01 1/4, KCBT March is 2 1/4 cents lower at $6.59 1/4 and MGE March is 5 cents lower at $8.22 1/4.
Cattle futures are trading lower at midday. Futures are being pressured by declining beef prices, expected weakness in the cash market and outside market pressure. Packer processing margins remain poor and boxed beef prices were down again on Friday. Weakness in the stock market and concern about sluggish beef demand is also a bearish factor. December is $1 lower at $117.30 and February is 75 cents lower at $117.70.
Lean hog futures are higher at midsession. Strength in the cash market and the 32 cent jump in pork cutout values on Friday are supporting the market. Cash markets are reportedly steady to firm again this morning as packer margins are decent. However, gains are being limited and some deep deferred contracts are lower on outside market pressure as the stock market is trading lower today. December is 75 cents higher at $86.15 and February is 58 cents higher at $87.00.