Corn futures are trading 9 to 13 cents higher at midsession. Corn prices are up on renewed weather concerns. Continued dryness across the U.S. Corn Belt could potentially damage crops due to heat stress, thereby lowering yield potentials. Weakness in the dollar index is favorable for prices. Traders are anticipating a bullish crop progress report for corn as ratings are expected to decline due to dry weather conditions.
Soybean futures are trading mixed at midsession. Soybean futures lost some momentum after a strong rally in prices in early morning trade. Lack of adequate rainfall over the key production regions and lower yields due to inadequate soil moisture levels remains a concern for new crop beans and is supporting deferred contracts. USDA reports export sales of 165,000 tonnes of U.S. soybeans to China for delivery in 2012/13.
Wheat futures are trading 5 to 13 cents higher at midday. Wheat futures recover amid tough market conditions on spillover support from the corn market and short covering by traders. Weakness in the dollar index is friendly for prices. The Kansas Wheat Harvest Report reports yields as mixed, with decent to good yields reported along with disappointing yields in some areas.
Cattle futures are trading lower at midday. Choppy trade describes the cattle market through midday. Futures prices were up only to turn lower on wholesale beef prices and waning demand. Prices should see added support from cash market premiums. Beef packer margins are positive and trade in the cash cattle market is anticipated to be steady to $1 higher.
Lean hog futures trading higher at midday. Higher pork prices and follow-through buying are supporting the market. The pork cutout value was up 44 cents on Friday $82.23 per cwt. Hog futures are also supported by strength in the cash market. Trade in the cash market is called steady to higher.