Corn futures are extending losses at midday. Futures are trading quietly with price pressure tied to weak demand, the rapid pace of the 2012 corn harvest and pre positioning ahead of the October WASDE. However growing concern over 2012 ending stocks should limit losses while strength in the soybean markets should pull futures higher. December corn is trading 7 cents lower.
Soybean futures are trading higher at midday. Nearby contracts are adding to overnight gains, but pressure is beginning to build in the 2013 contracts. Soybean futures are being supported by firm demand and substantial weather damage to the Canadian canola crop. Weekly export sales were reported at approximately 1.3 tonnes on Thursday, topping the higher end of trade expectations. And this morning, USDA announced and export sale of 180,000 tonnes of U.S. soybeans to China during the current marketing year. November soybeans are trading 6 cents higher.
Wheat futures are trading lower at midday. Wheat futures are under pressure at this hour with light losses across all three exchanges. Poor demand for U.S. wheat continues to limit any upside movement across contracts. However, forecasts calling for very low temperatures across the U.S. Plains and news that the current Russian wheat crop is the smallest crop since 2003 should spark renewed buying interest in the market. December wheat at CBOT is 6 cents lower; at KCBT 2 ¾ cents lower; and 4 ¾ cents lower at MGE.
Live cattle futures are trading higher at midday. Cattle futures are higher on short covering tied to late cash development Thursday afternoon. Prices were reported steady to $2 higher than the previous week’s trade. The market is also supported by good export sales. Weekly sales were reported at 15,800 tonnes on Thursday, up 61 percent from the previous week. December cattle is trading 50 cents higher.
Lean hog futures are trading mixed on cash market weakness. The front month October contract is 45 cents lower on steady to lower cash prices. However demand for hogs is still good as packers buy for the weekend. Deferred contracts are being supported by bear spreading as the October contract is set to expire next week. December is trading 7 cents lower.
Cotton futures are trading lower at midday. The front month (December) contract is currently trading 56 points lower. Continued residual selling after futures hit a 100 day moving average yesterday is still affecting the market. Decreased export demand by China during the current market year is also another bearish factor for market prices.