Corn futures are strongly higher at midday. More rain is being forecast for the eastern Corn Belt, which will further slow planting progress. Yield prospects are declining as the optimal planting dates have passed and some acreage intended for corn could be switched to soybeans. The sharp rally in crude oil is helping to extend the gains. July is 27 1/2 cents higher at $7.47 3/4 and December is 17 cents higher at $6.70 1/4.
Soybean futures are sharply higher at midsession. Spillover support from corn, the sharp rally in crude oil and planting delays are pushing prices higher. More rain is forecast for the eastern Corn Belt. While that could push some acreage intended for corn to soybeans, it could also trim soybean yield potential if delays continue. Fund buying has also been triggered by crude oil trading up around $2.50 per barrel. July is 33 1/2 cents higher at $13.74 3/4 and November is 28 cents higher at $13.48 1/2.
Wheat futures are up strongly at midday. Outside markets and spillover support from corn are helping the wheat market rally. Deteriorating winter wheat conditions and the slow pace of spring wheat planting remain bullish factors. In addition, wheat production estimates for France continue to fall due to drought. A French analyst recently estimated the 2011 crop will be down 11.5% from last year. CBOT July is 42 cents higher at $8.06, KCBT July is 33 1/2 cents higher at $9.28 and MGE July is 36 cents higher at $9.72 1/4.
Cattle futures are trading mostly higher at midday. The June contract is being pressured lightly by expectations for lower cash trade this week. But deferreds have turned higher with the rally in corn. Outside markets are also supporting futures as fund are buying commodities as crude oil and metal prices are higher. June is 50 cents lower at $107.25 while August is 40 cents higher at $109.70.
Lean hog futures are lower at midsession. The market is being pressured by the $1.29 drop in pork cutout values on Tuesday and concern that pork prices will be soft after wholesalers complete Memorial weekend purchases. Cash prices are mostly steady today. Cash market are holding mostly steady as tight supplies of hogs and still record pork prices are supporting packer bids. June is $1.78 lower at $92.10 and July is $1.63 lower at $91.40.
Cotton futures are trading strongly higher at midday. Speculative buying is supporting the July contract on talk of a lack of cotton that will be deliverable for the July contract. New-crop is higher as well as production prospects are being hurt by drought in Texas and southern Georgia while flooding is a problem in Mississippi. July is 463 points higher at 159.67 cents and December is 188 points higher at 123.01 cents.