Corn futures are trading 7 to 21 cents higher midmorning. Corn futures are higher although met with slight pressure upon the release of today stocks and acreage report. Stocks were reported lower providing renewed strength to the July contract while acreage was reported higher than trade expectations adding pressure to new crop contracts. However, it seems traders have looked beyond today’s reports and focused on weather conditions across the Midwest. Forecasts remain unchanged with calls for hot, dry conditions over the next 7 to 10 days.
Soybean futures are trading 23 to 32 cents higher midmorning. Soybean prices continue to climb despite bearish news from today’s stocks and acreage reports. Both planted acreage and stocks were reported higher than average estimates. The trade is no longer focused on the reports but is instead focused on weather forecasts. Drought-like conditions across the Midwest continue to move prices higher.
Wheat futures are trading 4 to 9 cents higher midmorning. The market remains higher despite slight resistance to this morning’s bearish stocks report. Wheat stocks were reported on the high side of trade expectations at 742 million bushels. However the market is moving higher on spillover strength from the corn and soybean markets and lower than expected planted acres of wheat.
Cattle futures are mixed but mostly higher midmorning. Overall the market is being supported by the lower dollar index and follow through buying from yesterday’s price rally. The front month contract is currently pressured by lower beef prices and uncertain beef demand. Trade in the cash market remains sluggish with minimal activity taken place so far. Cash traded is anticipated to be steady to lower, possibly weighing on the market during the latter part of the trading session.
Lean hog futures are trading mixed but mostly higher midmorning. Market prices were met with resistance as the pork cut value took a nose dive on yesterday. The nearby contract is trading lower as traders position themselves ahead of this afternoon’s quarterly hogs and pigs report. The trade is expecting to see an increase in both market hog and breeding herd numbers. Deferred contracts are trading higher on expectations of slowed herd expansion.