Corn futures are trading 6 to 7 cents higher at midday. Corn futures continue to sustain market gains, trading mostly within a 10 cent range. Prices are firming but remain well below market highs. Strength in the soy complex as well the lower dollar index are supporting prices. But, the market’s movement higher is primarily tied to bargain buying after significant declines in the grain complex on Monday and Tuesday.
Soybean futures are trading 21 cents higher at midday. Soybean futures are maintaining double digit gains despite lack of bullish news in the market. Due to the recent selloffs in the market, the trade is expecting to see fresh rounds of export sales at these lower prices. Traders are continuing to watch weather conditions in South America, much needed rains are currently falling in Brazil with expectations for movement to other key growing regions.
Wheat futures are trading 10 to 11 cents higher at midday. Wheat futures are following the other grain markets higher. The recent pullback in the dollar index is favorable for prices possibly renewing buying interest in U.S. wheat. Other bullish factors for the market are exceptional dryness in Australia and the U.S. plains as well as bargain buying after yesterday’s steep market losses.
Live cattle futures are trading mixed but mostly lower at midday. Midmorning pressure is tied primarily to profit taking and uncertainty in the cash markets. Although traders are optimistic that cash prices will be higher again this week, cash trade has yet to develop. Strength in wholesale beef prices and tightening supplies should limit market losses.
Lean hog futures are trading mixed at midday. Front month October is up on trader optimism that cash prices are finally starting to stabilize. Nearby December contract is under pressure as traders bank profits on yesterday’s market rally. However, plunging pork carcass values and a plentiful supply of pork on the market could be limiting factors for any upside movement during today’s trading session.