Corn futures are trading 6 to 11 cents lower at midday. Corn prices were pressured in early morning trade as traders looked to liquidate their long positions in the market. Corn futures continue to tumble, with the July contract leading the way. The July contract declined by as much as 8 cents throughout the trading session. Spillover weakness from the wheat market is also dragging corn prices downward.
Soybean futures are trading 7 to 11 cents higher at midday. Soybean futures soar despite weakness in the other grain markets. Prices are being lifted as news that China is looking to increase soybean imports for the 2011/12 crop year. Weather remains bullish for the market. Forecasts of extreme dryness and concern about damage to soybeans crops are lending support to futures prices. However, calls for rain in the U.S. Midwest this week may limit gains.
Wheat futures are trading 12 to 17 cents lower at midday. The most significant factor the market remains weather. Wheat futures are plummeting as timely rains in Australia and the Black Sea Region over the holiday weekend eased uncertainties on global wheat supplies. Wheat harvest is underway in the US and reports from Kansas indicate that yields are expected to be fairly good.
Cattle futures are trading 10 to 35 cents higher at midday. Cattle futures are trading higher mostly on short covering in the market. Both choice and select beef cutout values were down on Friday. Packer margins are in the red after the Memorial Day; however trade in the cash market is expected to be steady. The market is seeing support from increased demand as retailers seek to restock their shelves after the holiday.
Lean hog futures are trading 60 to 90 cents higher at midday. Hog futures are up despite continued decline in the pork cutout value. However, expectations for a higher slaughter numbers this weekend is lending support the market as well as firm trade in the cash market. Cash market trade is expected to be 50 cents to $1 higher this week.
Cotton futures are trading 90 to 140 points higher at midday. Cotton futures are recovering from last week’s market decline. Weather remains an important factor for the market also. Parts of Georgia received rains over the weekend; however, there still remain calls for extreme drought in western Texas.