Corn futures are trading lower at midsession. USDA’s Crop Production and Supply/Demand reports were neutral, but spillover weakness from soybeans and wheat and outside markets are weighing on the corn market. USDA pegged the corn crop at 12.497 billion bushels and ending stocks at 672 million, both near trade expectations. Losses in the stock market due to increased concern of Greece defaulting on its debt and strength in the dollar are also weighing on the market. December is 3 1/4 cents lower at $7.33 1/4 and March is 2 1/2 cents lower at $7.46 3/4.
Soybean futures are strongly lower at midday. USDA’s Crop Production and Supply/Demand reports were bearish for the market. The U.S. crop was raised to 3.085 billion bushels while traders were looking for a small decline. Instead of trimming ending stocks as expected, USDA raised the projection to 165 million bushels from 155 million last month. Outside market pressure is also pressuring prices as the stock market is lower while the dollar index is higher. November is 30 cents lower at $13.96 3/4 and January is 28 1/2 cents lower at $14.08 1/4.
Wheat futures are solidly lower at midsession. USDA’s Supply/Demand report was bearish for the wheat market. U.S. ending stocks were raised to 761 million bushels from 671 million last month while traders were looking for the number to decline slightly. USDA decreased both exports and food use. Global supply/demand revisions were also bearish. USDA raised their projection for world ending stocks to 194.6 million tonnes, up 5.7 million tonnes from last month. Traders were looking for a small decline. CBOT December is 6 1/2 cents lower at $7.23 1/4, KCBT December is 15 cents lower at $8.16 1/2 and MGE December is 14 1/2 cents lower at $8.92 3/4.
Cattle futures are trading mostly higher at midday. Strength in the cash market last week and the stabilization of beef prices are supporting trade. Cash cattle traded at mostly $118 last week, up $4-$5 from the previous week. Tight supplies of market ready cattle pushed prices up strongly. Boxed beef prices were up slightly on Friday, but packer margins have tightened, which could discourage further strength in the cash market this week. October is 53 cents higher at $118.98 and December is 30 cents higher at $118.55.
Lean hog futures lower at midsession. The market is being pressured by the 76 cent drop in pork cutouts on Friday and the steady to lower tone in the cash market. However, losses are being limited by strong pork exports. For the first 7 months of the year, U.S. exports were up 16% from year-ago. October is 78 cents lower at $86.48 and December is 73 cents lower at $82.85