Corn futures are trading higher at midsession. Follow-through selling from the weakness on Wednesday and early weakness in crude oil futures initially weighed on the corn market. However, corn prices have rebounded along with crude oil this morning. Although USDA’s Supply/Demand revisions on Wednesday morning were seen as bearish, ending stocks are still projected to be a 15-year low this year and are forecast to remain tight next year. July is 1 3/4 cents lower at $6.75 1/2 and December is 3/4 of a cent lower at $6.25 1/4.
Soybean futures are lower at midday. The market is being pressured by technical selling and concerns that global economic growth is slowing. China is raising reserve requirements for banks in an effort to slow inflation. Sluggish export demand remains a bearish factor. Net sales last week were only 2.3 million bushels. Total shipments of only 6.6 million bushels were above half the pace needed to reach USDA’s export forecast. July is 3 cents lower at $13.28 3/4 and November is 6 1/2 cents lower at $13.14 1/2.
Wheat futures are strongly lower at midsession. The market is being pressured by follow-through selling and technical weakness following the losses on Wednesday. News that China increased its reserve requirements for banks to help cool inflation has been bearish for crop markets. Weekly export sales reported this morning of 11.8 million bushels of old-crop and 8.4 million of new-crop fell within trade expectations. CBOT July is 19 cents lower at $7.40, KCBT July is 19 cents lower at $8.81 and MGE July is 20 3/4 cents lower at $9.04 3/4.
Cattle futures are trading lower at midday. Lower boxed beef prices on Wednesday and weakness in the stock market are bearish factors. However, losses are being limited by some through that warmer weather will help improve domestic beef demand. Also, beef exports remains strong and for the year are up 32.4% compared to 2010. June is 35 cents higher at $109.40 while October is 25 cents lower at $116.05.
Lean hog futures are mixed at midsession. Firm pork cutout values and ideas of improving demand seasonally are supporting front end futures. There is optimism that wholesale demand for Memorial Day promotions will support pork prices. Deferreds contracts are mixed with some pressure coming from ideas that the recent drop in corn prices will lead to increased pork production. June is 58 cents higher at $93.80 and August is 5 cents higher at $94.15.
Cotton futures are sharply lower at midday. Another round of fund long liquidation is weighing on cotton prices. News that China is raising reserve requirements for banks in an effort to slow inflation are contributing to the weakness. July is 600 points lower at 144.30 cents and December is 600 points lower at 119.19 cents.