Corn futures are trading 6 to 14 cents lower midmorning. Prices are being weighed down by USDA’s Supply/Demand report, which was bearish for corn as ending stocks were higher than expected. Old crop stocks were expected to be down 30 million bushels, but instead were reported at 851 million. There were no revisions for new crop estimates. Exports for old crop corn were also down 50 million bushels from last month’s estimate of 1.650 billion bushels.
Soybean futures are trading 3 to 8 cents higher at midsession. The market is up on support from USDA’s bullish Supply/Demand report. Reported tightening supplies are helping to boost prices. USDA projects lower than expected ending stocks for both old and new crop soybeans. Old crop stocks were lowered to 175 million bushels, down from 35 million bushels from May. New crop ending stocks were down 5 million bushels at 140 million bushels compared to the trade estimate of 143 million.
Wheat futures are trading 9 to 12 cents lower at midsession. USDA’s Supply/Demand report was price friendly for wheat, however prices continue to tumble. Wheat ending stocks for 2011/12 were pegged at 728 million bushels, down from the 768 million in May. Worth noting is that USDA lowered the average yield level from 45.7 bu per acre to 45.4 bu per acre. Ending stocks for the 2012/13 were also lowered to 694 million bushels down 41 million bushels from the previous month’s estimate. World numbers were also lowered, with new crop pegged at 185.17 mmt.
Cattle Futures are trading mixed at mid-session. Cattle futures have been trading choppy throughout the morning session. However, prices should recover on steady to higher beef prices. Both choice and select cuts were reported up 75 cents to $1. Trade in the cash market is currently undeveloped but is expected to be steady to higher, lending support to prices.
Lean hog futures are trading mixed at mid-session. Hog prices are trading both sides of the market at midsession. Prices are supported by strength in pork prices. The pork cutout value was reported up $2.59 at $87.39, its highest since mid February. Strength in the cash market, firm exports and tightening supplies are lending support to hog futures. Lower corn prices are also beneficial for market prices.