Corn futures are trading 9 to 17 cents higher midmorning. Corn prices continue to climb on dry weather concerns. Yesterday the market traded limit up on weather worries and expectations of lower condition ratings. USDA’s crop progress report confirmed more damage to new crop corn. The report reported the corn condition rating at 56 percent; a 7 percentage point decline from the previous week.
Soybean futures are trading 2 to 6 cents lower midmorning. The market is trading choppy at midday. Prices slipped overnight into early morning trade on noncommercial selling pressures. However, forecasts for more dry hot conditions across the Midwest and lowered crop condition ratings should provide support to market prices.
Wheat futures are trading mixed midmorning. Initially prices were lifted from strength in corn futures, but flurries of global wheat reductions and dry conditions in the Black Sea region are currently underpinning the market. Recent reductions in Russian and Australian wheat crop estimates are expected to incite the USDA to lower world production and ending stocks in next month’s supply/demand report.
Cattle futures are trading mixed midmorning. Cattle futures are trading both sides of the market. On the one hand, prices are being pressured by weakness in the feeder cattle market and uncertainty in the cash market. However, short covering after sharp declines on yesterday are supporting nearby contracts. Cash traded is expected to pick up later in the week with prices called steady to lower.
Lean hog futures are trading lower midmorning. Hog futures turned lower after an initial opening rally on short covering and cash market premiums. Prices are being weighed on expectations of higher production costs due to soaring grain prices. Trade in the cash market is anticipated to be steady to lower.