Corn futures are trading 12 cents higher at midsession. Recent sale of U.S. corn to Japan in the amount of 180,000 tonnes is supporting corn futures at midday. The delivery is set for 2013/14 crop year which begins September 1, 2013. Crop damage from the remnants of Hurricane Isaac is provided additional support as heavy rains over the weekend slowed harvest in the southern region. USDA reports corn harvested as of Sept 2 at 12 percent.
Soybean futures are trading 21 to 22 cents higher at midsession. Soybean futures are trading steady at midday while traders closely monitor the market as prices continue to set record highs. The November contract traded 10 off of $18 overnight ($17.89) on brisk demand for soy products by China and growing concern over global ending stocks. Spot soybeans are also significantly higher posting a new record high of $17.94 3/4.
Wheat futures are trading 8 to 13 cents higher at midsession. Wheat futures are being pulled higher by the strength in the soybean market. However, futures are vulnerable to selloffs due to a higher dollar index and lack of bullish fundamentals. Traders believe that news that Russian is not planning any type of restrictive measures to curb wheat exports has already been prices into the market and therefore not affecting prices nearly as much as on Friday.
Live cattle futures are trading higher at midsession. Cattle prices are slightly higher at midsession despite eroding beef prices. Friday’s wholesale beef prices were decisively lower for choice (down $1.21) and marginally lower for select (down 57 cents). However prices are being supported by higher cash prices (up $2 to $3) and short term bullish outlook.
Lean hog futures are trading lower at midsession. Futures prices lack support by way of supply and demand fundamentals, which will continue bring prices down. Pork supply and slaughter numbers continue to climb causing cash prices to plummet. Also, worth noting is that non commercial traders reduced their net long positions by 3,900 contracts last week.