Corn futures are trading steady to lower at midday. The market is being pressured by strength in the dollar and weakness in the stock market as concerns about the euro zone crisis continue. However, losses are being limited by support from the rally in crude oil. An underlying supportive factor is the tight ending stocks projection for corn. December is 1/4 of a cent lower at $6.45 1/4 and March is 1/2 of a cent lower at $6.54 1/4.
Soybean futures are lower at midsession. Profit-taking on the recent rally and outside markets are weighing on soybean futures. Futures have rallied the past three trading session in part by rumors that China was buying U.S. soybeans. Those sales have so far gone unconfirmed. Strength in the dollar and weakness in the stock market are bearish factors, although soybean losses are being pared in part by strength in the crude oil market. January is 7 1/4 cents lower at $11.93 and March is 7 1/4 cents lower at $12.03.
Wheat futures are trading mixed at midday. Short-covering is supporting the CBOT due to firm cash market values for SRW wheat. However, gains are being limited by outside markets and continued concern about the euro-zone crisis. The KCBT is lower because of the rising value of the dollar and sluggish export demand. CBOT December is 4 1/2 cents higher at $6.37 1/4, KCBT December is 2 1/4 cents lower at $7.02 3/4 and MGE December is 1 cent higher at $9.32 1/4.
Cattle futures are trading lower this morning. Profit-taking from recent gains and spillover pressure from weakness in the stock market is weighing on futures trade. Cash trade has not developed yet this week. Packer margins remain in the red, although strong gains in beef prices this week have helped the negative margins improve. December is 48 cents lower at $121.25 and February is 25 cents lower at $123.80.
Lean hog futures are trading lower at midsession. Declining pork cutout values and the weak tone in the cash market is weighing on futures. Pork cutouts were down $1.40 on Tuesday. The lower pork prices coupled with ample supplies of market ready hogs is keeping the cash market on the defensive. December is 90 cents lower at $85.55 and February is 80 cents lower at $89.00.