Corn futures are trading 25 to 26 cents lower at midsession. The rapidly progressing state of 2013 corn harvest continues to place downward pressure on futures. Today’s crop progress report is expected to bearish, showing corn harvest at 20 to 25 percent harvested as last week. Profit taking, long liquidation and sharp declines in the soybean market are other negative factors for the market at midday.
Soybean futures are trading 62 to 64 cents lower at midsession. Soybean futures are also feeling the pressure of rapidly advancing harvest. Several analysts believe the market is technically overbought and the recent sell offs in the market are an overdue correction to record high prices. Soybean oil and soybean meal are trading sharply lower on spillover pressure from the soybean market. December soyoil is down 127 points while December soymeal is down its daily limit of $20.
Wheat futures are trading lower at midsession. Prices are trading moderately lower on spillover pressure from plummeting corn and soybean prices. Prices are trading slightly above session lows, however the downturn in the dollar index may prove to be beneficial and limit losses as the grain complex spiral downward. Chicago is trading off 33 cents; KCBT is trading off 31 to 32 cents; and MGE is trading 30 cents lower.
Live cattle futures are trading lower at midsession. Today’s lower prices are tied primarily to eroding packer margins and market uncertainty. Boxed beef prices are slightly higher and trader optimism for higher cash is also supportive. However, poor packer margins and shaky fundaments are causing market participants to proceed with caution.
Lean hog futures are trading lower at midsession. Prices are trading lower as traders bank profits and poor market fundamentals once again overwhelm the market. Hog slaughter continues to rise while cash prices continue to decline. However, the market may see support from tumbling corn prices and the notion that market prices are beginning to stabilize.