Corn futures are trading narrowly mixed at midsession. The market has been choppy this morning with early support coming from ideas that a smaller corn crop in Argentina will boost U.S. exports. Recent rainfall is too late to help the crop recover very much. But futures turned mixed at midsession with some spillover pressure from soybeans, strength in the dollar index and weakness in crude oil futures weighing on trade. March is 1/2 of a cent lower at $6.30 and May is 1/2 of a cent higher at $6.35 3/4.
Soybean futures are trading lower at midday. The market is being pressured by recent rainfall in South America that is improving soybean crop prospects. Rainfall was noted in northern Argentina and southern Brazil yesterday. Strength in the dollar index and lower crude oil futures and equities markets are also contributing to the weakness. March is 7 3/4 cents lower at $12.12 1/4 and May is 7 cents lower at $12.21 3/4.
Wheat futures are trading mostly higher at midsession. Firm cash basis levels for SRW wheat and improving export prospects are helping to support futures. Talk yesterday that Russia could impose export tariffs on wheat helped spark the rally. But gains are being limited by strength in the dollar index, which could slow the recent improvement in exports. CBOT March is 3 1/2 cents higher at $6.37, KCBT March is 4 3/4 cents higher at $6.90 3/4 and MGE March is 1 1/2 cents higher at $8.05 1/4.
Cattle futures are trading slightly lower at midsession. Profit-taking after hitting new highs in overnight trade is weighing on the market. However, losses are being limited by strengthening beef prices and ideas of steady or even higher cash trade this week. Packer margins remain deeply in the red, but market ready cattle supplies are tight. February is 45 cents lower at $125.35 and April is 33 cents lower at $128.85.
Lean hog futures are treading higher at midday. Short-covering and the firm tone in the cash market are supporting futures trade. Packers have been forced to raise bids despite poor processing margins. Cash prices are steady to $1 higher this morning as packers are still filling some needs for this week. Declining slaughter weights have led to ideas that big slaughters in recent weeks have pulled some hogs forward. February is 43 cents higher at $86.45 and April is 28 cents higher at $88.13.