Corn futures are trading solidly higher at midday. Firm basis levels and tight supplies of corn in the cash market are supporting the market. Trading has turned higher despite being pressured overnight by strength in the dollar index and weakness in the equities markets and crude oil. Better-than-expected rainfall was reported in Argentina overnight, but it is too late in the growing season to help the corn crop much. March is 10 cents higher at $6.29 3/4 and May is 9 1/4 cents higher at $6.35.
Soybean futures are trading lower at midsession. The market is being pressured by better-than-expected rainfall in Argentina, strength in the dollar index and weak equities markets. The rainfall in Argentina hit some of the driest areas and should help alleviate some crop stress. Argentina’s government cut its soybean crop production estimate to 48.9 million tonnes compared to the previous forecast of 52-53 million tonnes. March is 5 1/2 cents lower at $12.12 and May is 4 3/4 cents lower at $12.20 3/4.
Wheat futures are higher at midday. The wheat market was lower overnight, but short-covering and spillover support from corn has helped push wheat futures higher this morning. Futures are trading higher despite strength in the dollar index and generally bearish global supply and demand fundamentals. CBOT March is 11 1/2 cents higher at $6.31 1/4, KCBT March is 12 1/2 cents higher at $6.86 and MGE March is 7 1/2 cents higher at $8.10 3/4.
Cattle futures are trading solidly higher on midsession. Strength in boxed beef prices is supporting the market despite weakness in the stock market and strength in the dollar index. Choice beef prices were up $1.52 and select cuts were $2.21 higher on Monday. While packer margins remain deeply in the red, the improvement in beef prices could help support the cash market again this week as market ready cattle supplies remain tight. February is 98 cents higher at $125.58 and April is 70 cents higher at $128.88.
Lean hog futures are mixed at midday. Front end contracts are trading lower following the 37 cents drop in pork cutout values. Strength in the dollar index and weakness in the stock market are also bearish factors. But deferred contracts are trading higher on follow-through strength from yesterday and spillover support from the cattle pit. February is 70 cents lower at $85.78 and April is 30 cents lower at $88.20.