Corn futures are trading 6 to 8 cents higher at midsession. The market has rebounded and is pushing higher as forecasts predict more hot, dry days over the next two weeks. Yesterday’s crop condition ratings were indeed bullish for corn prices. December corn contract hit a record high during the overnight session nearing $8 per bushel after the release of Monday’s crop progress report. USDA pegged new crop corn good/excellent condition rating at 31 percent, down 9 percentage points from the previous week.
Soybean futures are trading 3 to 5 cents higher at midsession. Prices are rising as hot weather conditions across the Midwest are expected to linger for 1 to 2 more weeks. Forecasters are calling for extended periods of high heat and dry conditions with no indication of substantial rain relief. Crop conditions continue to deteriorate, as indicated by USDA crop progress report on yesterday. USDA reported soybean good/excellent condition ratings at 34 percent, down 6 percentage points from the previous week.
Wheat futures are trading higher at midsession. Prices slipped in the overnight session on rounds of speculative selling during to falling grain prices. However, wheat prices are higher on renewed strength in the corn markets. Prices are seeing additional support from growing concern over global wheat supply levels due to consistent reductions to Russian wheat estimates. Trade at CBOT is up 7 cents, KCBT is up 13 cents and MGE is up 12 cents.
Cattle futures are trading mixed but mostly lower at midsession. Cattle futures are trading lower on struggling boxed beef prices and sluggish cash trade. The market opened under pressure after Monday’s boxed beef prices closed lower for both choice and select cuts. Cash trade started the week out sluggish and is expected to trade lower compared to the previous week. Rising corn prices and high temperatures are negatively affecting the market as well.
Lean hog futures are trading lower at midsession. Hog futures are sharply lower at midday, pressured by soft demand for pork products and declining pork cutout values. Packers’ reluctance to purchase hogs for slaughter and rising corn prices are also pushing prices lower. Traders are concerned that consumer demand for certain pork products will continue to decline due to rising temperatures and will ultimately push wholesale pork prices even lower.