Corn futures are sharply lower at midday. Rumors that China bought U.S. corn helped rally prices, but that has gone unconfirmed and traders took profits on the recent gains. Spillover weakness in wheat has helped extend the losses in corn. Weather forecasts are generally favorable for the next week for crop development. However, some forecasts are still touting a period of hot and dry conditions at the end of June and early July. The July contract is 26 1/2 cents lower at $6.81 and December is 22 cents lower at $6.58 1/4.
Soybean futures are trading lower at midsession. After rallying the past two days, profit-taking has developed to push prices lower. Spillover pressure from the strong losses in corn and wheat are also bearish factors. Further losses are being limited by yield uncertainty for the crop and concern about the amount of acreage that will be lost due to flooding. July is 12 1/2 cents lower at $13.36 1/4 and November is 10 cents lower at $13.39 3/4.
Wheat futures are sharply lower at midday. Profit-taking, seasonal winter wheat harvest pressure and improving crop prospects in Ukraine are weighing on futures. A larger crop in Ukraine will be bearish for U.S. wheat export prospects. Sluggish export demand recently has been a bearish factor. CBOT July is 31 cents lower at $6.43 1/4, KCBT July is 27 cents lower at $7.76 1/2 and MGE July is 35 1/4 cents lower at $8.67 1/2.
Cattle futures are trading strongly lower at midsession. The market is setting back from the recent gains that had pushed the August contract to a seven-week high on Tuesday. Losses in the corn market are also weighing on futures. However, cash fundamentals remain favorable. Strength in boxed beef prices are expected to help the cash market trade $1-$2 higher this week. June is $1.30 lower at $111.90 and August is $1.15 lower at $112.00.
Lean hog futures are lower at midday. After hitting two-month highs on Tuesday, profit-taking has developed to push prices lower. However, cash markets are at or near record highs following gains on Tuesday. Packer margins remain poor, but tight supplies of market ready hogs have forced plants to raise bids to fill slaughter needs. July is 70 cents lower at $98.30 and August is 73 cents lower at $97.25.