Corn futures are trading lower at midsession. Market prices have pulled back slightly from morning gains. There is not much new information concerning the market and the trade is awaiting USDA’s monthly WASDE report which is scheduled to be release this Friday, so slight profit taking is primarily responsible for the midday drawback. The market remains underpinned by poor crop condition ratings and expectations for sharp reductions to corn production output and yield estimates.
Soybean futures are trading 5 cents higher at midsession. The market is holding on to gains, although slightly as contracts are pressured by profit taking. Market prices stabilized in the overnight session after posting moderate losses on Monday. However, higher prices can be attributed to expectations that USDA will slash soybean production and yield estimates due to drought conditions and tightening global supply situation. The declining dollar index and higher outside markets should provide support to prices as well.
Wheat futures are trading lower at midsession. Wheat prices tumbled as corn prices pulled back and as traders secured profits ahead of Friday’s WASDE report. Gains in the stock market as well as the lower dollar index should limit losses along with the long term bullish sentiment of the market. Recent reductions to projected wheat output in the Black Sea Region, EU, and Australia are expected to cause reductions to global supply, which will more than likely increase the demand for U.S. wheat.
Live cattle futures are trading 10 to 25 cents higher at midsession. Cattle futures are trading on the positive side at midday due to higher boxed beef prices and short covering. Higher outside markets and the lower dollar index are providing support to the market as well. However, the draw back in the grain complex may provide some push back across deferred contracts.
Lean hog futures are trading 40 to 50 cents higher at midsession. Lean hog futures are showing signs of recovery at midday as analysts peg higher pork prices and higher bids for cash hogs by packers as the primary reasons for upside momentum. Other bullish factors for the market today are higher outside markets and a lower dollar index.