Corn futures are trading slightly lower at midsession. Corn prices continue to trade narrowly, awaiting fresh news to provide a sense of direction in the market. Drought conditions and yield reductions are becoming old news, and the trade is now focused on demand. Prices will remain on the defensive as traders book profits and soybean futures slide lower. Although the long term outlook remains strongly bullish, the market is vulnerable to long liquidation and price swings due to increased volatility.
Soybean futures are trading 2 cents lower at midsession. Currently prices are at a standstill, trading sideways approximately 4 to 5 cents off of unchanged. Slight weakness is the market can be attributed to profit taking and forecasts for rains the latter portion of the week. However, demand for soy products remains strong, with USDA reporting another significant export sale of soybeans to China this morning. Exports sales totaled 110,000 tonnes of soybeans for delivery in 2012/13.
Wheat futures are trading 3 to 5 cents higher at midsession. Wheat futures are leading the grain complex at midday. Prices are slightly higher across all exchanges supported by weakness in the dollar index. The lower dollar index should help keep prices steady but any hint of bearish news will likely pull prices lower. Late week expectations for rain across the winter wheat belt as tropical storm Isaac makes landfall may limit upside momentum in Chicago wheat.
Live cattle futures are trading higher at midsession. Cattle futures are experiencing midday prices support on weakness in the grain complex and short covering. Currently corn and soybean futures are trading well off of recent highs providing slight relief to producers. However, lack of bullish fundamentals could potentially limit gains. Cash trade is likely to remain undeveloped until the latter part of the week, but prices are anticipated to be steady to lower.
Lean hog futures are trading mixed at midsession. Overall midday futures are trading lower. Front month contract (October) is slightly higher but not definitive. Market prices are weighed down by by tumbling wholesale pork prices and steadily declining cash prices. Even though the market was able to rally yesterday, traders anticipate weakness in the market to continue as long as pork slaughter and pork supply remain on the rise.