Corn, soybeans remain lower at midday
Corn futures are trading 3 to 9 cents lower at midsession. Corn futures remain lower at midday, although showing signs of improvement from early morning losses. Forecasts for rain across the northern Midwest over the next 2-3 days are pulling prices lower. Lower outside markets and rounds of commercial/non-commercial long liquidation remain bearish for the market today. The market awaits UDSA’s weekly crop progress report this afternoon, where analysts estimate a four percentage point decline to corn’s good/excellent condition rating.
Soybean futures are trading 33 to 39 cents lower at midsession. Forecasts for early week rains are causing soybean prices to tumble at midday. Soybean prices collapsed at the onset of the overnight session due to pressure from outside markets and non commercial long liquidation after hitting record highs last week. The market anticipates this afternoon’s crop progress report, where the trade expects to see continued deterioration to 2012 soybean crop due to the worst drought in over 50 years. Analysts’ are predicting a three percentage point decline to the soybean good/excellent condition rating.
Wheat futures are trading 12 to 19 cents higher at midsession. Wheat prices are feeling the same pressures as the other grain markets. The sell offs across the grain markets due to long liquidations and calls for much needed rains are adversely affecting wheat prices. A rising dollar index and the ever surfacing EU debt crisis are placing added pressure to prices today. However, market losses should be capped by dwindling global wheat supplies due to unfavorable weather conditions across key wheat producing regions.
Live cattle futures are trading 20 to 67 cents higher at midsession. Cattle futures are higher despite lower wholesale beef prices. Market prices are rallying as pressure from weeks of rising corn prices is finally subsiding. However, the trade may see resistance to a market rally as cash trade and outside markets are anticipated to be lower while the dollar index pushes higher.
Lean hog futures are trading 40 to 65 cents lower at midsession. Pressure from lower outside markets and upside momentum in the dollar index due to the ongoing EU debt crisis is pushing prices lower at midday. Look for losses to be limited by weakness in the corn market and tightening supply concerns over the next few months.