Corn futures are trading lower midmorning. Prices are being weighed down by USDA’s Supply/Demand report, which was bearish for corn as stocks were pegged even higher than expected and yield is forecast at a record high of 166 bu/a, putting production at 14.79 billion bushels. Old crop stocks were expected to be down 52 million bushels, but instead were raised 50 million to 851 million. New crop ending stocks came in at 1.881 billion bushels versus trade expectations of 1.714 billion. July is 12 cents lower at $5.95 1/4 and December is 9 1/2 cents lower at $5.07 1/4
Soybean futures are trading higher at midsession. The market is up on support from USDA’s bullish Supply/Demand report. USDA projects lower than expected ending stocks for both old and new crop due to exports being projected even higher. Exports for 2011/12 were raised 25 million bushels to 1.315 billion bushels and 2012/13 are pegged at 1.505 billion. Old crop stocks are forecast at 210 million bushels, down 40 million from April. New crop ending stocks are pegged at 145 million bushels compared to the trade estimate of 164 million. July is 20 3/4 cents higher at $14.51 and November is 23 1/2 cents higher at $13.57.
Wheat futures are trading mixed at midsession. USDA’s Supply/Demand report was mostly bullish for wheat, but spillover pressure from corn is weighing on futures. World numbers were higher than expected, with old crop world ending stocks forecast at 197.03 mmt and new crop pegged at 188.13 mmt. U.S. stocks are also forecast lower despite expectations for a large crop, as exports are estimated at 1.15 million bushels for 2012/13. U.S. winter wheat is pegged at 1.694 billion bushels, up 13% from 2011. CBOT July is 1 cent lower at $5.99; KCBT July is 2 1/2 cents lower at $6.16 1/2; and MGE July is 1 1/4 cents lower at $7.29.
Cattle Futures are trading mixed at mid-session. Cattle futures opened higher this morning as traders regained confidence in beef demand. However, spillover pressure from hog losses is weighing on the cattle market. Favorable packer margins and a steady to higher expected cash trade this week should lift prices. June cattle futures are 3 cents higher at $116.62 and August is 7 cents lower at $118.85
Lean hog futures are trading lower at mid-session. The market continues to slide lower on higher hog weights and weak pork demand. Wednesday’s pork cutout value was down 71 cents at $78.16 adding additional pressure to prices. However, hog slaughter is expected to be between 16,000 and 18,000 head, which should lift market prices. The June contract is down 20 cents at $84.65 and the July contract is down 35 cents at $84.90.