Live cattle posting strong gains at midday
Corn futures are losing ground midmorning. Corn futures are trading fairly choppy on light volume going into midsession. Futures moved higher during the overnight session on bargain buying after a tough day of trade on Monday. Strength in the soybean market is expected to support prices. Yesterday’s crop progress report showed corn harvest at 79 percent complete, one percentage point below expectations but still moving at an exceptionally rapid pace. December corn is trading 2 ¼ cents higher.
Soybean futures remain steady midmorning. The soybean market is holding onto firm gains after USDA announced export sales of 110,150 tonnes of soybeans to an unknown destination for the current marketing year. Although not confirmed, traders are speculating this order will go to China. Overnight price support was a result of bargain buying and trading optimism the export demand will soon pick up. Yesterday’s crop progress report showed soybean harvest at 71 percent complete, on target with trade expectations. November soybeans are trading 15 ¾ cents higher.
Wheat futures are trading choppy midmorning. Lack of fresh news has wheat futures trading both sides of unchanged searching for market directions. Wheat futures are showing marginal improvement at this hour. Futures are slightly higher, supported by strength in the soybean market and the downturn in the dollar index. As of this writing the dollar index is down .39%. However, gains may be short lived due to poor export demand for U.S. wheat despite dwindling global supply. December wheat at CBOT is trading ½ of a cent higher.
Live cattle futures are trading sharply higher midmorning. The firm increase in wholesale beef prices is boosted cattle futures at the opening of pit trade. Closing prices were $2.28 cents higher for choice cuts, while selected cuts jumped $1.85. Traders remain optimistic concerning this week’s cash trade, with preliminary prices steady to higher than the previous week. October cattle is trading $1.45 cents higher.
Lean hog futures are trading mixed this morning. Front month (Dec) contract is trading under pressure, trading back both sides of unchanged. Deferred contracts are being supported by higher grain prices. The highly watch June 2013 contract is trading slightly above $100 per cwt. Cash price are called steady to higher while the pork carcass value remains strong and should support futures the remainder of the session. December futures contract is unchanged at $78.55.
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