Corn futures are trading higher at midsession. The market is rebounding slightly from the losses posted on Thursday. Concern about corn crop prospects in Argentina continue to be support even though forecasts call for improved chances of rainfall next week. Further gains are being limited by weekly export sales of 12 million bushels were at the very low end of pre-report trade expectations. March is 1 1/2 cents higher at $6.45 and May is 1 1/2 cents higher at $6.53.
Soybean futures are higher at midday. Futures are rebounding slightly from the losses on Thursday. Crop stress in southern Brazil and Argentina remains a supportive factor. Forecasts are calling for improved chances of rain next week, but updated outlooks this morning have taken out some rainfall. Gains are being limited by the dollar index turning higher again this morning and weekly export sales of only 10.3 million bushels, which fell below pre-report trade expectations. January is 1 cent higher at $12.02 1/4 and March is 1 cent higher at $12.10.
Wheat futures are mixed at midsession. Winter wheat markets are trading higher on light short-covering from recent weakness. Strength in corn is also providing spillover support. However, gains are being limited by strength in the dollar index and disappointing weekly export sales. Sales of 6.9 million bushels were well below pre-report trade expectations. The MGE continues lower on follow-through selling. CBOT March is 3/4 of a cent higher at $6.30, KCBT March is 1 cent higher at $6.87 while MGE March is 4 cents lower at $8.14 1/2.
Cattle futures are trading lower at midday. Declining wholesale prices are weighing lightly on the futures market as traders wait for the cash market to develop. Choice cutouts were down $2.56 on Thursday. However, packers are said to be short-bought and may need to pay steady money compared to last week to obtain enough cattle to fill slaughter schedules. February is 75 cents lower at $120.20 and April is 10 cents lower at $124.80.
Lean hog futures are higher at midsession. The market is being support by strength in the cash market. The strong demand late in the week is somewhat surprising given the tightened processing margins. Demand is expected to improve seasonally, especially given the relatively high price of beef compared to pork. February is 53 cents higher at $84.38 and April is 18 cents higher at $87.40.