Corn futures are trading 15 to 28 cents higher midmorning. Corn prices continue to climb as forecasts for excessive heat persist through the end of the week across the Midwest. Temperatures are forecasted lower going into next week but below average rainfall will continue to stress the corn crop. Traders’ concern that damage to the new crop is irreparable is fueling both commercial and non commercial buying interest, thus pulling prices higher.
Soybean futures are trading 30 to 53 cents higher midmorning. Soybean futures are trading higher as weather forecasts across the Midwest remain hot and dry into next week. With small possibilities for rain over the next 7 days, traders fear that damage to corn and soybeans crops is irreversible and yield reductions are unavoidable. The market will continue to see support from bullish fundamentals, but is currently driven by weather.
Wheat futures are trading 12 to 22 cents higher midmorning. Wheat prices are being pulled higher primarily by strength in the corn market. Declining spring wheat ratings and concern over global wheat stocks are supporting prices as well but not to the extent of recent market gains. A turn in the corn market may incite a round of speculative selling.
Cattle futures are trading mixed midmorning. Cattle futures are trading mixed as the market get gears up for cash trade. Declining beef prices and waning beef demand will weigh on prices, possibly capping market gains. However, rising grain prices and anticipated steady cash trade should lend support to prices.
Lean hog futures are sharply lower midmorning. Nearby contracts are down sharply on weak demand and poor packer margins. The pork cutout value plummeted on Tuesday by more than $2 per cwt. With packers procuring most of their slaughter needs before the mid week holiday, trade in the cash market is sluggish, depressing futures prices.