Corn futures are trading mostly lower at midsession. Early strength faded and most contracts other than the nearby March futures turned lower once the dollar index turned higher. Choppy, consolidation type trade is expected today on positioning ahead of the USDA reports due out on Thursday morning. Traders are looking for USDA to lower the U.S. ending stocks number as a smaller corn crop in Argentina should benefit U.S. exports. March is 1/2 of a cent higher at $6.42 3/4 and December is 4 cents lower at $5.71 1/4.
Soybean futures are slightly lower at midday. The market has pulled back from overnight gains amid strength in the dollar. Choppy trade is likely to continue to as the market gears up for the USDA report due out on Thursday morning. Traders are looking for USDA to lower the soybean production estimates for Argentina and Brazil. March is 1 cent lower at $12.31 and November is 2 1/2 cents lower at $12.38 3/4.
Wheat futures are trading slightly lower at midsession. The market is pulling back slightly from recent short-covering gains amid strength in the dollar index. Choppy trade is likely today on positioning ahead of the USDA reports due out on Thursday morning. Pre-report expectations are for U.S. and global ending stocks to decline slightly. CBOT March is 2 1/2 cents lower at $6.59 3/4, KCBT March is 2 1/4 cents lower at $7.09 3/4 and MGE March is 2 cents lower at $8.36 1/2.
Cattle futures are trading mixed at midsession. Recent strength in boxed beef prices and reports of firm bids for cash trade this week are supporting front end contracts. Showlists are generally smaller this week and packers are short-bought. However, processing margins remain poor, which will limit strength in the cash market. Deferred contracts are lower on concern about beef demand. February is 18 cents higher at $125.53 and April is 3 cents higher at $128.60.
Lean hog futures are lower at midday. The February contract is higher amid firm pork cutouts and the steady to higher cash market bids. But deferred contracts are lower on profit-taking. The expectation for seasonal improvement in demand has been supportive recently and is helping to limit losses in futures today. February is 23 cents higher at $86.40 while April is 25 cents lower at $88.85.