Corn futures are trading strongly lower at midday. Favorable weather for crop development is forecast for the Corn Belt over the next couple of weeks. While corn acreage may be down from intentions, yield prospects are expected to improve. Outside markets are also weighing on futures. The dollar index is strongly higher while the stock market is lower this morning. July is 27 1/2 cents lower at $7.28 and December is 14 1/2 cents lower at $6.70 1/2.
Soybean futures are lower at midsession. Spillover selling in corn and strength in the dollar index are weighing on soybean futures. Mostly favorable weather forecasts for crop development in the Midwest over the next couple of weeks are also weighing on futures. However, futures remain in a trading range on still tight ending stocks projections and uncertainty about the potential damage due to flooding the Missouri River Valley. July is 4 cents lower at $13.64 and November is 2 1/2 cents lower at $13.61 1/4.
Wheat futures are solidly lower at midday. The market is being pressure by spillover selling in corn, strong gains in the dollar index and some harvest pressure. The drought in the southern Plains has no drought hurt yields, but harvest reports show good quality and some show better than expected yields, which are keeping pressure on the futures market. CBOT July is 16 1/2 cents lower at $7.14 1/4, KCBT July is 17 1/2 cents lower at $8.22 1/4 and MGE July is 18 1/2 cents lower at $9.50.
Cattle futures are trading mostly higher at midsession. Stabilized beef prices and expectations for firm cash trade this week are supporting the market. However, gains are being limited by weakness in the stock market and strength in the dollar index. Further weakness in corn has pushed some deep deferred contracts lower on ideas that cheaper feed costs could increase cattle feeding. June is 63 cents higher at $104.90 and August is 40 cents higher at $105.75.
Lean hog futures are higher in 2011 contracts and lower in 2012 months. Steady to higher cash markets and the 64 cent jump in pork cutout prices on Tuesday are supporting front end contracts. But lower corn prices, weakness in the stock market and strength in the dollar index are limiting gains in front in contracts and are weighing on 2012 contracts. July is 10 cents higher at $94.55 and August is 25 cents higher at $94.25.
Cotton futures are trading lower at midsession. Profit-taking and outside market weakness are weighing on futures. Strong gains in the dollar index and weakness in the stock market are bearish for commodity markets. July is 219 points lower at 153.35 and December is 385 points lower at 127.93 cents.