Corn futures are trading higher at midsession. Spillover support from soybeans and further weakness in the dollar are supporting the market. The market is concerned that planting delays could lower acreage from planting intentions and also could trim yield potential. However, drier weather in the eastern Corn Belt should allow some corn planting over the next week. July is 6 cents higher at $7.64 1/2 and December is 8 cents higher at $6.87 1/2.
Soybean futures are higher at midday. Technical buying and further weakness in the dollar has helped soybean futures rally to the highest spot price in two months. Growing ideas that soybean acreage will fall short of earlier projections are supporting the market. Planting progress remains well below normal, although some progress should be made over the next week as forecasts have turned drier. July is 18 1/2 cents higher at $14.04 3/4 and November is 13 3/4 cents higher at $13.88 1/2.
Wheat futures are higher at midsession. Short-covering from recent losses and further weakness in the U.S. dollar index are supporting the market. The market has been pressured by news this week that Russia will lift its ban on grain exports July 1. However, much of their wheat is expected to be low quality and high quality wheat supplies are expected to remains tight. CBOT July is 8 3/4 cents higher at $7.68, KCBT July is 11 cents higher at $9.02 1/2 and MGE July is 8 1/2 cents higher at $10.14.
Cattle futures are trading mixed at midday. The June contract is being supported by the discount of futures to this week’s cash trade and strong packer margins. Choice cutouts were up 78 cents. Deferred contracts are steady to lower on concern about ample supplies of cattle and uncertainty about demand and spillover weakness from lean hog futures. June is 48 cents higher at $102.63 while August is 43 cents lower at $103.50.
Lean hog futures are lower at midsession. The $1.70 decline in pork cutout values and steady to lower cash markets are weighing on the futures market. Packer margins remain poor following recent weakness in pork prices. Pork cutout values were at an all-time high level on May 16, but have since fallen 10%. There are ideas that Memorial Day weekend pork sales were disappointing given the lower pork prices this week. June is 80 cents lower at $88.98 and July is 80 cents lower at $88.35.
Cotton futures are trading mostly higher this morning. The spot month July contract is lead the gains, but new-crop December has turned slightly higher after some early profit-taking weekend. The continued drought in Texas that will threaten cotton production remains a bullish factor. July is 383 points higher at 164.80 cents and December is 10 points higher at 137.37 cents.