Corn futures are trading mostly higher at midsession. Weakness in the dollar index and firm cash markets are supporting front end contracts. Increased export demand and light farmer selling has been supported basis. But gains in futures are being limited by weakness in equities markets and spillover selling from the soybean and wheat pits. March is 2 3/4 cents higher at $6.37 1/4 and May is 3 1/4 cents higher at $6.43 1/4.
Soybean futures are trading lower at midday. Weakness in the equities market and profit-taking from recent gains are pressuring the market.
Export demand has slowed as China celebrates its New Year. South American weather will continue to be watched. Hot and dry weather is expected in Argentina, but some rain showers are expected next week. Drier weather will benefit harvest in some areas of Brazil. March is 4 1/2 cents lower at $12.18 1/4 and May is 4 1/4 cents lower at $12.27 3/4.
Wheat futures are mostly lower at midsession. Light profit-taking is weighing on futures after the market traded higher the previous six sessions. But losses are being limited by further weakness in the dollar index overnight and spillover support from corn. Export demand is expected to improve as Russian wheat has become more expensive. They may halt exports soon. In addition, much of the wheat crop is vulnerable to a cold snap this week due to the lack of snow cover. CBOT March is 1 3/4 cents lower at $6.51 3/4, KCBT March is 3 3/4 cents lower at $7.05 1/4 while MGE March is 2 1/2 cents higher at $8.29 3/4.
Cattle futures are trading narrowly mixed at midsession. Trade is choppy amid pre-report positioning ahead of the semi-annual Cattle Inventory report and as traders wait for the cash market to develop. The report is expected to show the total herd size down 1%-2% from last year. Cash trade is currently expected to be near unchanged from last week. February is 15 cents lower at $124.40 while June is 23 cents higher at $126.73.
Lean hog futures are trading higher at midday. Strength in the cash market on Thursday is supporting futures. However, gains are being limited as packer processing margins have fallen further into the red. Pork cutouts were down 88 cents on Thursday. Outside markets are mixed as the dollar index is lower, but the stock market is also trading lower this morning. February is 55 cents higher at $86.50 and April is 25 cents higher at $87.05.