Corn futures are trading 9 to 14 cents higher at midday. New crop contracts found renewed strength as expectations of another reduction in new crop condition ratings mount. New crop corn needs moisture as it enters the pollination phase, but the outlook over the next week is expected to remain hot and dry adding more heat stress to an already weakening corn crop.
Soybean futures are trading 12 to 19 cents higher at midday. The market is trading higher on Midwest weather worries. Dry conditions and lack of soil moisture across the Midwest has negatively affected new crop corn and soybeans. USDA lowered crop condition ratings for both markets this week and is expected to decrease ratings for the upcoming week as well. Prices are also supported by firm export demand.
Wheat futures are trading 14 to 19 cents higher at midday. Spillover support from corn and dry weather conditions in Russia and China are supporting prices. Traders are keeping a close eye on global wheat production as the market outlook turns more bullish. So far over the last two weeks Russia, Australia, Ukraine and China have lower their wheat production estimates. It is expected that USDA will lower its wheat production outlook in next month’s WASDE report.
Cattle futures are trading mixed at midday. Cattle futures are trading both sides of the market ahead of today’s Cattle on Feed report and undeveloped cash trade. The Cattle on Feed report is expected to show May placements 13 percent higher, May marketings up 5%, and cattle on feed 1 percent higher than the previous year. Cash trade is expected to pick up significantly today, with prices called steady to lower.
Lean Hogs are trading lower at midday. Profit taking and repositioning ahead of today’s Cold Storage report are pressuring market prices. Analyst’s estimate May’s cold storage at 643 million pounds, up 95 million pounds from the previous year. Cash prices are easing but remain firm due to tight supplies. The trade is anticipating cash prices to be steady to 50 cents higher.