Corn futures are trading 2 to 3 cents higher at midday. Corn futures are sliding lower following the way of the soybean and wheat markets. However, the market is underpinned by last week’s bullish stocks report. USDA also announced export sales of 100,000 tonnes of corn to Mexico for split delivery during 2012/13 (33,333 tonnes) and 2013/14 (66,667 tonnes). Nevertheless, sharp losses in the other grain markets are expected to keep futures trading defensively.
Soybean futures are trading 30 cents lower at midday. Soybean futures are tumbling on several key factors. Futures are trading defensively after Friday’s quarterly stocks report proved to be quite bearish for the prices. Also the rapid pace of soybean harvest and plantings in South America are weighing on futures. Soyoil and soymeal are both under pressure as well. Soyoil prices are down $1.38-$1.43 while soymeal prices are $7 lower.
Wheat futures are trading 18 to 21 cents lower at midday. Wheat futures are extending losses at midday on forecasts for favorable rains across the U.S. Plains. Also, significant losses in the soy complex are pulling futures lower along with technical selling after last’s week impressive rally. The dollar index is trading lower and could potentially spark buying interest in U.S. wheat but at the moment is being overshadowed by the overall bearish tone of the market.
Live cattle futures are trading higher at midday. Surprisingly, cattle futures are trading higher at midsession despite eroding wholesale beef prices. Friday’s closing wholesale beef prices collapsed with choice down $3.06 at $188.98 while select closed $2.95 cents lower at $177.85. Nonetheless, cash cattle trade is expected to rebound this week, with calls for steady to higher cash trade.
Lean hog futures are trading higher at midday. Hogs futures exhibiting strength during midsession trade despite traders’ apprehension the market would react negatively towards USDA’s quarterly hogs and pigs report released last Friday. The report forecast total inventory at 67.50 million head, slightly higher than the previous year. The breeding herd inventory was forecast at 5.79 million head, 0.3 percent from the previous year.