Corn futures are trading lower at midday. Positioning ahead of the USDA report due out on Wednesday and outside market pressure is weighing on the market. USDA will release new Crop Production and Supply/Demand reports on Wednesday. Traders are expecting USDA will slightly lower the production estimate and will also lower the ending stock projection. Strength in the dollar and weakness in the stock market has helped extend losses. December is 5 1/2 cents lower at $6.50 1/4 and March is 4 1/2 cents lower at $6.61 3/4.
Soybean futures are solidly lower at midsession. Strength in the dollar and positioning ahead of the USDA reports on Wednesday. USDA is expected to raise their ending stocks estimate for soybeans as sluggish export demand could force USDA to lower its export projections. USDA’s crop production estimate is expected to be near the October estimate. November is 21 1/2 cents lower at $11.91 and January is 20 cents lower at $12.01.
Wheat futures are lower at midday. Spillover pressure from corn and soybeans and strength in the dollar are weighing on wheat futures. Pre-report trade expectations are for USDA to lower its ending stocks estimate slightly from October. Losses are being limited by reports that Urkraine could lose up to 30% of its 2012 winter wheat crop due to drought. CBOT December is 5 cents lower at $6+.31 3/4, KCBT December is 1 3/4 cents lower at $7.16 1/4 and MGE march is 5 3/4 cents lower at $8.65 3/4.
Cattle futures are trading mostly lower at midsession. Futures are drifting lower as traders wait for the cash market to develop. Strength in the cash market last week helped push futures higher. But packer margins are poor and they may be hesitant to raise bids. However, losses in the cash market are expected to be limited by tight supplies of market ready cattle. December is 5 cents lower at $124.45 and February is 65 cents lower at $125.25.
Lean hog futures are lower at midday. Declining pork prices and the weak tone in the cash market is weighing on the market. Pork cutout values were down $1.04 on Friday. Seasonally large hog supplies and slow wholesale demand are pressured pork prices. Further losses are being limited by strong export sales. December is $1.25 lower at $85.60 and February is $1.05 lower at $89.05.