Corn futures are trading lower at midday. Follow-through selling from the weakness on Monday and spillover weakness from soybeans and wheat are weighing on the market. USDA’s baseline acreage projection at 92 million acres was above the current trade expectations. However, losses are being limited by recent export sales to Mexico and Egypt. March is 2 3/4 cents lower at $6.93 and December is 6 1/4 cents lower at $6.01 1/4.
Soybean futures are solidly lower at midsession. The market is being pressured by the cancelation of old-crop export sales and rising production estimates for the soybean crop in Brazil. Although listed as “unknown destination”, it is believed that China has canceled some more old-crop sales and is shifting demand to the soon to be harvest South American crop. March is 19 1/2 cents lower at $13.83 1/4 and November is 18 1/2 cents lower at $13.47.
Wheat futures are strongly lower at midday. Profit-taking following the gains on Monday is weighing on the market. Drought concerns in China’s wheat growing region remains a bullish factor, but recent snowfall has provided some much needed moisture. Strong demand for high quality wheat remains an underlying supportive factor, although concern that demand will not hold up is contributing to the sell-off in futures. CBOT March is 23 cents lower at $8.49, KCBT March is 20 3/4 cents lower at $9.56 1/4 and MGE March is 20 cents lower at $9.93.
Cattle futures are trading slightly higher at midsession. Expectations for firm cash trade this week are supporting the market. Showlists are smaller this week and boxed beef prices have stabilized. Ideas of rising global meat demand in 2011 are also encouraging speculative buying. However, gains this morning have been trimmed by profit-taking from early gains. February is 40 cents higher at $109.60 and April is 68 cents higher at $114.55.
Lean hog futures are mostly higher at midday. Optimism that pork export demand will remain strong and the 68 cent jump in pork cutout prices on Monday are supporting prices. Total pork exports in 2010 were up 3% in volume and 10% in value. Gains are being limited by recent weakness in the cash market as most plants have needs covered for the week. April is 25 cents higher at $92.70 and June is 53 cents higher at $102.60.
Cotton futures are sharply higher at midsession. Speculative buying has helped the market rebound from recent profit-taking losses. Tight cotton supplies and the competition for acreage this spring have helped trigger the rally. March is 335 points higher at 189.40 and December is 200 points higher at 124.68 cents.