Corn market outlook remains unchanged, futures soar

Corn futures are trading 13 to 23 cents higher midmorning. Not much has changed concerning the outlook for the market. Market prices keep on climbing as forecasts for high temperatures across the Midwest continue into next week. The corn crop is currently in its critical pollination stage and in need of good rains to replenish moisture. Crops are expected to see more stress as temps across the Midwest are forecasted to reach triple digits later in the week.

Soybean futures are trading 19 to 23 cents higher midmorning. Dry, hot weather forecasts and spillover strength in the corn market are pushing soybean prices higher. Meteorologists are calling for extended hot dry forecasts across the Midwest, with no indication of favorable rains to relieve heat stressed crops. Weather forecasts are currently outweighing market fundamentals for both corn and soybean markets.

Wheat futures are trading 11 to 21 cents higher midmorning. Wheat futures moved higher on spillover strength in the corn/soybean markets and global wheat reductions. Early morning declines were brushed off as the grain complex strengthened on weather worries. Weather worries in the Black Sea region remain on the wheat radar and are lending support to prices as well.

Cattle futures are trading higher midmorning. Short covering and higher boxed beef prices are supporting cattle futures. As forecasts for hot weather continue, livestock prices will see support from lighter carcass weights. Uncertainty in the cash market has the potential to limit today’s market gains. Trade is expected to pick up the latter part of the week with steady to lower prices.

Lean hog futures are trading moderately higher midmorning. Hog futures are soaring on short covering and market discounts to cash prices. The nearby contracts brushed off pressure from demand worries and easing cash market prices. Trade in the cash market is expected to be steady to lower. End of the month liquidation ahead of Friday’s Hogs and Pigs report is expected to weigh on market prices, capping market gains.

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