Corn futures are trading slightly lower at midday. Nearby contracts are pressured slightly as soybean futures pullback and weakness in the crude oil market. Prices continue to trade sideways between $8.00 and $8.11. Prices remain moderately lower than last week’s record highs but still supported by bullish fundamentals. Weekly export inspections for corn were bearish at 14.4 million bushels, well below the 37.9 million bushels needed to stay on course with USDA’s demand projection.
Soybean futures are trading 6 to 10 cents lower at midday. Soybean prices are on the decline following pressure in the U.S. crude oil market and forecasts for timely rains across the Midwest. Nearby November contract hit another record high of $17.60 during overnight trade on grim production estimates, but has since pulled back to trade both sides of unchanged. The ProFarmer tour wrapped up on Friday and analysts estimated the 2012/13 soybean crop at 2.60 million bushels, lower than the current USDA estimates of 2.692 million bushels.
Wheat futures are trading mixed at midday. Chicago wheat continues to struggle midmorning as the U.S. missed out on key wheat purchases and news that India plans to release portions of its wheat reserves. Prices at KCBT and MGE are slightly higher but still pressured by generally bearish fundamentals. However, the lower dollar index and higher outside markets may renew buying interest for U.S. wheat, providing prices with a much needed boost. .
Live cattle futures are trading lower at midsession. Prices opened pit trade on the defensive pressured by tumbling wholesale beef prices and lackluster demand for beef products. Friday’s wholesale beef prices were reported $1.69 and $1.40 lower for choice and select cuts respectively. Traders believe retailers have secured enough beef products to adequately fill shelves before the Labor Day holiday. Cash trade is currently undeveloped with uncertainty surrounding prices for the current week.
Lean hog futures are trading slightly higher at midsession. Nearby contracts on renewed buying interest as grain prices pull back. However, the market is expected to remain under pressure on short term bearish fundamentals. Large hog supplies will continue to weigh on futures along with lower cash prices. Hog slaughter totaled 2.2 million head last week, the largest on record for 2012 thus far.