Corn futures are trading higher at midday. Outside market support and news that China has purchased U.S. corn and may be looking for more is helping to rally prices. Strong gains in crude oil and the stock market and weakness in the dollar are also supportive factors. However, crop weather remains generally favorable for crop development and forecasts for the next couple of weeks are non-threatening. September is 7 1/2 cents higher at $6.26 1/4 and December is 6 1/4 cents higher at $6.14 3/4.
Soybean futures are higher at midsession. Outside market support and the need for some weather premium are supporting prices. Crop weather is generally favorable for crop development currently. But with the smaller acreage number and uncertainty about August weather, traders are pushing soybean prices higher. Strength in crude oil and the stock market and weakness in the dollar are helping to extend gains. August is 14 1/2 cents higher at $13.36 3/4 and November is 17 1/2 cents higher at $13.36.
Wheat futures are trading mostly lower at midday. The KCBT and MGE are solidly lower amid news that Egypt bough Russian wheat. This is Egypt's first purchase from Russia since the nearly year-long ban on exports following the drought that hurt last year's wheat crop. But losses at the the CBOT are being limited by spillover strength from corn and soybeans. CBOT September is 3/4 of a cent lower at $6.26 1/4, KCBT Sep is 17 1/2 cents lower at $7.09 and MGE Sep is 10 cents lower at $8.17 1/2.
Cattle futures are trading higher at midsession. Traders are still waiting for the cash market to develop this week, but futures are being supported by outside markets. The better-than-expected jobs report has improved the outlook for the economy and thus beef demand. Cash trade is expected to be steady to $1 higher this week as packers are short-bought and need supplies for a full slaughter schedule next week. August is 68 cents higher at $113.63 and October is 53 cents higher at $119.93.
Lean hog futures are strongly higher at midday. The discount of futures to cash and talk of possible pork sales to Russia are supporting the market. So far this year, Russia has purchased 52.4 million pounds of U.S. pork versus 6.4 million at this time last year. Cash markets are higher this morning. Declining hog weights indicate that producers are current and packer margins improved yesterday with the $1.19 jump in pork cutouts. July is $1.48 higher at $97.50 and August is $1.83 higher at $95.43.