Corn futures are higher at midday. The market is being supported by Mexico’s 3.9 million bushel purchase of U.S. corn, one of the largest daily sales ever reported by USDA. The sale is for corn to be delivered in 2011/12 and 2012/13. Weakness in the dollar is making U.S. corn more attractive to foreign buyers. Concerns about planting delays and yields and acreage losses are also supporting the market. July is 4 cents higher at $7.36 and December is 6 1/2 cents higher at $6.73 1/2.
Soybean futures are trading higher at midsession. Futures are recovering from the strong losses on Monday amid concern about planting delays and weakness in the dollar. Planting progress nationally was 68% complete as of Sunday, below trade expectations and down from the five year average of 82%. Soybean emergence was at 44% compared to the average pace of 61%. Traders will be gearing up for the Supply/Demand report on Thursday morning. Ending stocks projections are expected to remain tight, leaving little room for a decline in projection soybean production. July is 7 3/4 cents higher at $13.91 and November is 7 3/4 cents higher at $13.80 1/2.
Wheat futures are lower at midday. Improved weather for the European wheat crop and profit-taking at the MGE are weighing on the market. Although yields are poor as expected, winter wheat harvest in the southern Plains is beginning to pressure prices. Harvest as of Sunday was 10% complete compared to the five-year average of 7%. Profit-taking is weighing on the MGE despite spring wheat planting delays. The crop was 79% seeded as of Sunday versus the five-year average of 98%. CBOT July is 7 cents lower at $7.37, KCBT July is 12 1/2 cents lower at $8.77 1/2 and MGE July is 28 1/2 cents lower at $10.13 1/2.
Cattle futures are trading higher at midsession. The futures market is rebounding from the losses yesterday on reports of some steady cash trade at $104 in Texas. Ideas are that some trade could develop later this week at $105. Weakness in the dollar is supportive. Beef exports have slowed in the most recent weekly export report, but weakness in the dollar should help boost demand. June is 90 cents higher at $103.30 and August is 93 cents higher at $104.25.
Lean hog futures are mostly higher at midday. Short-covering from recent losses are helping to support most futures contracts despite continued bearish cash fundamentals. Pork cutouts were down $2.13 on Monday and cash prices were down $1.42 on a national average. Packer margins remain poor and cash markets are being reported at $.50 to $2.00 lower again today. June is 5 cents lower at $89.65 while July is $1.10 higher at $88.85.
Cotton futures are sharply lower at midsession. Limit losses are being posted in the July contract and deferreds have been pulled lower as well. Profit-taking from recent gains and long liquidation are weighing on the market. July is 700 points lower at 148.63 cents and December is 668 points lower at 130.25 cents.