Corn, soy markets pressured by drier South American forecasts
Corn futures are trading mixed at midday. Corn futures are being pulled lower by spillover weakness in the soy complex and strength in the U.S. dollar index. The market is also being pressured by the resumed planting of the Argentine corn crop. The market is expected to trade on both sides of unchanged due to pre WASDE positioning and poor export demand. December corn futures are trading ¾ cents higher.
Soybean futures are trading lower at midday. Soybean futures are being pressured by long liquidation and the end to heavy rains in South America. A dryer forecast in Argentina over the next the several days is expected to help farmers resume the planting process. The market is also expected to be affected by position squaring ahead of this week’s WASDE report. November soybean futures are trading 11 cents lower.
Wheat futures are trading higher at midmorning. Wheat futures are exhibiting strength despite the downturn in the other grain markets. Futures prices are being supported by dry weather conditions across the U.S. Plains. Global supply worries are also lending support to the market. However, the market could turn lower if the other grain markets post moderate to heavy losses. December wheat at CBOT is trading 10 ¾ cents higher; KCBT is trading 9 ½ cents higher; and MGE is trading 7 cents higher.
Live cattle futures are trading mostly lower at midmorning. Cattle futures are trading mostly lower on unsupportive fundamentals and easing boxed beef prices. Friday’s closing boxed beef cutouts were lower for both choice (-$0.76) and select (-$0.76) cuts. Last week’s cash trade was lower versus the previous week and given poor beef packer margins, the trade anticipates another week of lower cash prices. December live cattle futures are trading 3 cents higher.
Lean hog futures are trading defensively at midmorning. Hog futures are edging lower as investors monitor losses in the stock markets. The market remains under pressure from lackluster demand and decreased meat consumption on the east coast as a result of Hurricane Sandy. Currently demand for pork products is struggling while supply remains plentiful, which also bearish for the market. Cash trade is expected to start the week lower. December hog futures are trading 25 cents lower.