Corn futures are trading 6 cents higher at midday. Morning trade has been relatively quiet for the corn market primarily due lack of fresh news. Corn futures continue to push higher on supply worries and spillover support from the soybean market. Traders are concerned that more aggressive demand rationing needs to take place, which will lend support to the market prices.
Soybean futures are trading 27 to 28 cents higher at midday. Soybean futures are being pulled higher on general supply/demand fundamentals. Global demand for the oilseed remains firm while soybean stocks are anticipated to be extremely tight due to this year’s devastating drought across the Midwest. However, as futures trade at record high levels, price volatility in the market has the potential to incite rounds of non commercial liquidation.
Wheat futures are trading 2 to 5 cents higher at midday. Wheat prices are currently being pulled higher by strength in the corn and soybean markets. Speculative news that Russia may implement some form of export control because exportable grains may run out later this year may prove beneficial for prices in the short term. Although, this news has not been confirmed, traders will continue to keep an eye out for more fresh news concerning this matter.
Live cattle futures are trading 7 to 12 cents higher at midday. Live cattle futures are extending gains as wholesale beef prices surge increasing expectations for higher cash prices this week. Tuesday’s closing boxed beef prices were reported $2.32 higher for choice and $1.81 higher for select cuts. Although cash trade is expected to be higher again this week with asking prices about $2 higher, movement in the cash market is not expected to pick up until later in the week.
Lean hog futures are trading 72 cents to $1 lower at midday. The front month contract (October) is posting moderate losses at midday. Analysts have attributed the recent downturn in the market to improved weather conditions for producing and transporting hogs, implying increased production. Lackluster cash prices continue to plague the market as packers lowered bids due to increased available supply.
Cotton futures are 16 to 27 points higher at midday. Since the release of the USDA WASDE report last week cotton futures have been heavily pressured by even larger ending stocks estimates. However, prices found renewed strength as news circulated that Chinese imports are expected to jump 150 percent.