Corn futures are trading 5 to 6 lower at midsession. Corn prices are experiencing much volatility at midday, but ultimately pulled lower by the significant drop in wheat prices.The market will continue to be supported by bullish supply fundamentals and should limit downside momentum. The trade will keep watch on the unfavorable weather conditions facing China, where Typhoon Bolaven is expected adversely affect the corn crop.
Soybean futures are trading 3 to 7 cents higher at midsession. Soybean futures are leading the grain complex as corn and wheat prices subdue to midday pressures. Prices remain higher, although well off session highs, on strong fundamentals and expectations for below average soybean yield and production estimates as the ProFarmer crop tour wraps up. Estimates for yesterday’s tour pegged Minnesota and Iowa pod counts below their three year average. As China continues to purchase large quantities of soy products from the U.S., traders will keep a watchful eye on Typhoon Boleven which expected to damage crops over several growing regions.
Wheat futures are trading 6 to 9 cents lower at midday. Wheat futures have given back recent gains as forecasts for showers across the winter wheat belt pressure the market. Due to light movement in the market today, prices are more likely to experience swings in either direction. Global wheat production is on the decline which could spark renewed buying interest for U.S. wheat pushing prices upward, but today’s strength in the dollar index is limiting market advances.
Live cattle futures are trading 22 to 42 cents lower at midday. Lower than expected cash prices this week are pressuring cattle futures market midmorning. Although cash prices were steady, traders liquidated positions because the trade had already anticipated prices at least $1 to $2 higher than the previous. The majority of the cash trade action transpired yesterday, with expectations for light trade today if at all which will mostly be clean up before the Labor Day holiday.
Lean hog futures are trading mixed at midsession. Lean hog futures are trading a random pattern of unchanged to higher across the board as of this writing. The pork carcass value was up yesterday, but cash hog prices continue to slip lower. Prices are expected remain under pressure and pork supplies increase. Packers are expected to slaughter 150,000+ head this weekend, taking advantage of the recent price setbacks in the market.