Dry weather concerns push corn prices higher at midday
Corn futures are trading 7 to 10 cents higher at midday. Corn prices turned higher during morning trade on dry weather concern across the U.S. Midwest. Prices will continue to see pressure as the U.S. dollar index increases. Gains will be limited by bearish macro economic factors, such as the Spanish credit downgrade and lack of information concerning plans to stimulate the U.S. economy.
Soybean futures are trading mixed at midday. Fundamentals for the market remain encouraging and are limiting losses. Front month contracts are supported by export demand sales to China and Egypt. USDA reported export sales of 410,000 tonnes of soybeans to China, of which 60,000 tonnes which will be delivered in 2011/12. USDA also reported exports of 120,000 tonnes of soybeans to Egypt for the 2011/12 marketing year. However the state of the global economy and a rising dollar index are currently weighing on prices.
Wheat futures are trading 3 to 6 cents lower at midday. Wheat futures remain lower on outside market pressures and the fast progressing winter wheat harvest. Yesterday’s interest rate cut by China spurred optimism in the global economy and was beneficial for prices. However, Spain’s lowered credit rating and no explicit news as to how the U.S. Federal Reserve plans to stimulate the U.S. economy are weighing on the market. If stressful crop conditions persist in the Black Sea Region, market prices may see some additional support.
Cattle futures are trading lower at midday. Cattle prices are currently influenced by negative outside market news. The EU debt crisis and lowered Spanish credit rating are negatively affecting commodity prices. Trade in the cash market is quiet after an active day on Thursday. Cash prices in Texas, Kansas, and Nebraska are reported $1 higher than the previous week.
Lean hog futures are trading higher at midday. Hog futures are up despite early morning profit taking. Steady to higher cash prices and firm demand are lifting market prices. Cash prices in the U.S. Midwest are reported up as much as $2. Pressure from the outside markets and the higher dollar index are not affecting the market as much as other commodities.