Corn futures are trading lower midmorning. Corn futures continue to trade narrowly, pressured by the rapid pace of the 2012 corn harvest, sliding soybean futures and pre-WASDE position squaring. Yesterday’s crop progress report showed corn 69 percent harvested, one percentage point shy of trade expectations but well above the previous year. Pre report trade estimates peg the average production of the 2012 corn crop at 10.601 billion bushels, 126 million bushels below the September estimate. December corn is trading 9 cents lower.
Soybean futures are trading lower midmorning. Soybean futures are tumbling as traders liquidate long positions ahead of tomorrow’s WASDE estimates. Better than expected crop outlook for soybeans is the primary cause of today’s market pressure. Pre report trade estimates forecast soybean production at 2.759 billion bushels with an average yield of 37.006 bushels per acre. Both estimates are above USDA’s September forecast. Expectations for a huge crop soybean crop out of South America is another bearish factor for futures. November soybean contract is trading 28 ½ cents lower.
Wheat futures are trading mixed midmorning. Wheat futures are extending gains at this hour with extra support from the downturn in the dollar index. Prices continue to see support from global supply worries as Australian and Russian wheat production is expected to be reduced significantly in tomorrow’s WASDE report. Pre report trade estimates peg global ending stocks (average) at 172.813 million tonnes, 3.897 million tonnes below USDA’s September estimate of 176.710 million tonnes. December wheat at CBOT is trading 2 cents higher, KCBT is trading 3 cents higher, and MGE is trading ¼ of a cent lower.
Live cattle futures are trading higher midmorning. Firm wholesale beef prices and cash trade optimism are supporting cattle futures. Packer margins continue to improve and traders believe bids will rise as a result. Cash trade has yet to develop is expected to be steady at worst versus the previous week. October cattle contract is trading 25 cents higher.
Lean hog futures are trading higher midmorning. A rebound in cash prices and strength in the pork carcass value has sparked moderate buying interest in the hog market. Cash hogs are reported as steady to $2 higher some terminals. Futures are also being supported by pre holiday demand by grocers and retailers. October lean hog contract is trading 70 cents higher.