Corn futures are trading 8 to 14 cents higher at midday. The nearby contract is leading the way with double digits gains at midday. Prices remain firm as the dollar index weakens, making exports more appealing to buyers. The market is also seeing support as old crop stocks are tightening. Weather forecasts going into the next few weeks for new crop corn are still a concern for market prices.
Soybean futures are trading 25 to 35 cents higher at midday. The soy market is being supported by overall bullish supply/demand fundamentals. Prices are soaring as China purchased another round of U.S. soybeans (120,000 tonnes) to compliment Monday’s purchase. Producer protests in Argentina and dwindling supplies in Brazil are boosting prices as well.
Wheat futures are trading 8 to 12 cents higher at midsession. Spillover support from the corn and soybean markets are lifting wheat prices. The fundamentals of the market are bearish as global wheat supplies are anticipated to be plenteous and winter wheat harvest is progressing nicely in the U.S. Plains. However, a declining dollar index is providing market support.
Cattle futures are trading 12 to 40 cents higher at midday. The market is up despite yesterday’s lower box beef prices. Pressure from outside markets have eased concerning the EU debt crisis and is proving to be favorable for commodities. The falling dollar index is also supportive for cattle prices. Trade in the cash market is not expected to pick up until later in the week, but prices are anticipated to be steady.
Lean hog futures are trading mixed but mostly higher at midday. Hog futures are seeing slight pressure as the pork cutout value declined 21 cents yesterday to $82.81. Pork packer margins remain in the red, but prices are lifted as cash market trade is called steady to 50 cents higher and supplies are tight. The falling dollar index and easing outside market pressure should lend support to market prices.