Corn futures are trading higher at midsession. Outside market support and concerns that dry weather in South America will hamper corn crop production are supporting the market. Early pollinating corn in Brazil and Argentina is being stressed by dry conditions and high temperatures and further problems could develop if conditions continue. Strength in the stock market and weakness in the dollar index are also supportive factors. March is 6 cents higher at $5.85 and May is 5 1/2 cents higher at $5.93 1/4.
Soybean futures are solidly higher at midday. Futures are rallying on increasing concerns about dry weather in South America. Although it is still early in the season, hot weather and some dry areas are becoming a concern for soybeans in Brazil and Argentina. Strength in the stock market and weakness in the dollar index are also supporting the market. January is 16 cents higher at $11.27 3/4 and March is 15 1/4 cents higher at $11.36 1/2.
Wheat futures are higher at midsession. The market is being supported by spillover strength from corn and soybean along with weakness in the dollar index. However, gains are being limited by the lack of any bullish fundamental news. U.S. export demand remains sluggish and global wheat supplies are abundant. CBOT march is 5 3/4 cents higher at $5.85, KCBT March is 6 1/2 cents higher at $6.44 and MGE March is 1 3/4 cents higher at $8.17 1/2.
Cattle futures are trading sharply lower at midsession. Positioning ahead of the Cattle on Feed report and ideas of steady to lower cash trade today is weighing on the market. The report due out after the close is expected to show that placements during November were only down only slightly from a year ago with the average trade estimate at 99.6% of a year ago. Marketings during November are expected to be 98.5% resulting in December 1 cattle on feed at 104%. December is $1.05 lower at $117.70 and February is $1.30 lower at $117.85.
Lean hog futures are strongly lower at midday. The weak tone in the cash market and lower pork cutout values are weighing on the futures market. Packer margins remain favorable, but slaughter needs have been covered for now. Talk that export demand has slowed recently and sluggish domestic demand now that holiday demand has been covered are also bearish factors. February is $2.18 lower at $83.25 and April is $1.90 lower at $86.23.