Corn futures are trading lower at midsession. Strength in the dollar, weakness in crude oil and some much needed rainfall in Argentina are weighing on the market. While the rains are welcome, there is still concern about crop stress as another round of hot and dry is expected following the rain front. Losses are being limited by positioning ahead of the USDA reports due out on Thursday morning. March is 5 cents lower at $6.47 and May is 5 1/4 cents lower at $6.54.
Soybean futures are strongly lower at midday. The market is being pressured by rainfall in Argentina and outside markets. The rainfall will help ease crop stress in Argentina from recent hot and dry conditions. Strength in the dollar index and weakness in crude oil are pressuring prices. Traders are also positioning for the USDA reports due out on Thursday morning. January is 26 cents lower at $11.97 3/4 and March is 28 cents lower at $12.04.
Wheat futures are trading mostly lower at midsession. Strength in the dollar index and spillover weakness from corn and soybeans are weighing on the market. Traders are also gearing up for the USDA reports due out on Thursday morning. Trade expectations are for USDA to estimate winter wheat acreage at 41 million, up from 40.7 million acres in 2011. The USDA report is expected to reinforce the bearish global supply/demand outlook for wheat. CBOT March is 5 cents lower at $6.34 3/4, KCBT March is 6 1/2 cents lower at $6.91 1/2 while MGE March is 2 1/4 cents higher at $8.14 1/2.
Cattle futures are trading lower at midsession. Profit-taking from the gains on Tuesday and caution ahead of this week’s cash trade are weighing on the futures contract. Uncertainty remains about the cash market. Packer processing margins are negative, but firm beef prices and smaller showlists this week could help keep cash market steady this week. February is 28 cents lower at $120.93 and April is 65 cents lower at $124.80.
Lean hog futures are lower at midday. Profit-taking and lower cash hog and pork prices are weighing on the futures market. Pork prices were down $1.35 on Tuesday and the tone in the cash market has turned bearish. Strength in the dollar index is a bearish factor for pork exports. However, there remains optimism for strong pork exports this year especially with more foot-and-mouth disease found in China. February is 95 cents lower at $83.35 and April is $1.20 lower at $86.15.