Corn futures are trading 12 to 24 cents higher midmorning. New crop contracts continue to push higher on forecasts for hotter, dryer weather across the U.S. Corn Belt. The market is also seeing support from after USDA reported that corn crop conditions deteriorated from last week due to crop stress. The good to excellent condition rating for the new crop decreased 3 percentage points to 63 percent.
Soybean futures are trading 49 to 52 cents higher midmorning. Soybean prices are soaring as bullish fundamentals strengthen. Old crop contracts are supported by reported exports sales of 140,000 tonnes of soybeans to an unknown destination for 2011/12 delivery. Weather forecasts for increasing temps across key production regions are boosting new crop prices. Yesterday’s crop progress report reported a 4 percentage point decline in soybeans’ good to excellent condition rating, which is helping to support new crop prices also.
Wheat futures are trading 6 to 18 cents higher midmorning. Wheat prices are being pulled higher by spillover strength in the corn and soybean markets. Today’s sharply lower dollar index is supporting market prices as well as unfavorable weather conditions in parts of the Russia, Ukraine and China. News that Russia reduced their 2012/13 wheat crop by 3 mmt to 50 mmt is also favorable for prices and will likely increase demand for U.S. wheat.
Cattle futures are trading mixed midmorning. The market is being pressured by declining beef demand and decreasing boxed beef prices. Profit taking after price rally is currently placing downward pressure on futures. Trade in the cash market is not yet underway but is expected to be steady to lower.
Lean hog futures are trading mixed midmorning. Nearby contracts are trading slightly lower due to profit taking. However, market prices continue to see encouragement from higher cash and wholesale pork prices. Cash prices are expected to continue to climb due to tightening supplies. Cash trade is reported 50 cents to $2 dollar higher at varying terminals.