Corn futures are trading lower at midday. The market continues to watch South American weather closely. Light rainfall has brought some relief to Argentina. Warm and dry weather is forecast for Argentina the rest of the week, but forecasts are showing improved chances of rain next week. Losses are being limited by weakness in the dollar index and strength in the stock market this morning. March is 7 3/4 cents lower at $5.96 1/4 and May is 7 1/2 cents lower at $6.03 1/4.
Soybean futures have turned slightly lower as of midsession. The market is being pressured lightly by some beneficial rainfall in Argentina and forecasts for improved chances of rainfall next week. However, losses in the futures market are being limited by concern about decreased soybean production in South America. Southern Brazil remains generally dry and crop stress is likely to increase over the next week. Outside markets are also helping to limit losses as the dollar index is lower while equities are higher this morning. March is 5 cents lower at $11.78 1/2 and may is 5 1/4 cents lower at $11.87 1/4.
Wheat futures are trading solidly lower at midday. Spillover weakness in corn and bearish fundamentals are weighing on wheat futures this morning. Export demand remains sluggish and global wheat supplies are ample. Precipitation in the southern Plains late this fall and so far this winter should benefit the HRW crop. However, further losses are expected to be limited by weakness in the dollar index. CBOT March is 12 cents lower at $5.92 3/4, KCBT March is 11 1/4 cents lower at $6.61 3/4 and MGE March is 3 3/4 cents lower at $8.04 3/4.
Cattle futures are trading lower at midsession. The futures market is being pressured by uncertainty about the cash market and on positioning ahead of the Cattle on Feed report due out on Friday. Declining beef prices and poor packer margins could limit the cash market this week even though prices were stronger last week. February is 43 cents lower at $123.10 and April is 53 cents lower at $126.28.
Lean hog futures are higher at midday. The firm tone in the cash market and the 48 cents jump in pork cutouts on Tuesday are supporting the market. Packers are keeping steady to firm bids as a relatively big Saturday slaughter is being planned. However, further gains in the futures market are being limited by rising slaughter weights and tight packer processing margins. February is 43 cents higher at $86.20 and April is 50 cents higher at $87.90.