Corn futures are trading higher at midday. Corn futures are trading relatively quiet in a narrow range. Prices are been bouncing back and for between 1 to 4 cents above unchanged. There are any new bullish developments in the market right now so much of today’s price support is tied to the lower dollar and the gains in the other grain markets.
Soybean futures are trading higher at midday. Soybean futures are trading very volatile with nearby futures haven traded on both sides of unchanged. Pressure from weakness in the soy oil market is limiting upside price movement keeping prices confined in a narrow trading range. However, the market is supported by USDA’s announcement that export sales of 140,000 tonnes of soybean cake and soybean meal will be delivered to South Korea during the 2012/13 marketing year.
Wheat futures are trading higher at midday. Wheat futures are posting solid double digit gains at midday across all exchanges. There is news circulating that Russia may be forced to limit grain exports if their domestic prices continue to rise as a means to limit inflation. This information coupled with the lower dollar index has increased buying interest in the wheat complex. Chicago is trading 15 cents higher; KCBT is trading 13 cents higher; and MGE is trading 15 cents higher.
Live cattle futures are trading higher at midday. Cattle futures are showing signs of strength ahead of today’s cattle on feed report this afternoon. The trade expects the report to be bullish with the number of cattle on feed remaining steady while placements are expected to be about 7 to 8 percent lower. The trade is also expecting to see August beef stocks lower than July’s in today’s cold storage report.
Lean hog futures are trading higher at midday. Hog futures are extending gains at midsession on follow through buying and higher cash price enthusiasm. Wholesale pork prices were reported as higher, another supported factor for the market. The market is also awaiting this afternoon’s cold storage report. Analysts’ expect pork August stocks to be higher than 700,000 thousand pounds higher than July’s stocks, primarily due to this summer’s severe drought conditions.