Corn futures are trading solidly higher at midsession. The market is being supported by short-covering from the strong losses last week, outside market support and increased concern about flooding in the Missouri River Valley following recent rainfall. The dollar is weaker on some optimism that the debt issue in Greece would be resolved. Weather forecasts are also providing some support as models are calling for some hot and dry weather over the western Corn Belt. July is 16 cents higher at $7.16 1/2 and December is 20 1/4 cents higher at $6.80 3/4.
Soybean futures are solidly higher at midday. Short-covering from recent losses and outside markets are supporting the rally. Weakness in the dollar is supporting commodity markets on news that European leaders have pledged to help Greece with their debt concerns. Crop conditions ratings improved slightly last week to 68% good to excellent, slightly above the ten-year average of 65%. However, updated weather forecasts this morning for an extended hot and dry period in the western Corn Belt is adding some weather premium back into the market. July is 15 3/4 cents higher at $13.51 1/2 and November is 17 1/4 cents higher at $13.52 3/4.
Wheat futures are trading higher at midsession. Fundamental support and outside markets are supporting futures trade. Strength in corn, HRW wheat production shortfalls and spring wheat prevented planting are bullish factors. The spring wheat crop is normally 100% planted, but is only 91% seeded as of Sunday. This implies that 1.3 million acres of intended spring wheat acreage was left unplanted. Weakness in the dollar is also a supportive factor for commodity markets. CBOT July is 15 1/2 cents higher at $6.74 3/4, KCBT July is 7 3/4 cents higher at $8.08 3/4 and MGE July is 7 3/4 cents higher at $9.08 1/4.
Cattle futures have turned mixed midsession. After the strong gains yesterday, the futures market is consolidating as traders wait to see how the cash market develops this week. Cash trade is currently expected to be up $1-$2 from the $108-$109 trade last week. Packer margins remain positive and boxed beef prices were strongly higher on Monday. Choice cutouts were up $1.90 and select cuts were up $1.81. June is 13 cents lower at $111.70 while August is 33 cents higher at $112.30.
Lean hog futures are trading mixed at midday. Strength in the cash market and the 88 cent jump in pork cutout values on Monday are supporting front end contracts. Cash markets are steady to as much as $2 higher this morning. Tightening supplies of market ready hogs and improved pork prices are supporting cash, although estimated packer margins remain poor. Deferred contracts are slightly lower on some profit-taking from recent gains. July is 45 cents higher at $98.00 and August is 40 cents higher at $97.08.