Corn futures are trading solidly lower at midsession. Strength in the dollar and concern that China might raise its interest rates to curb inflation are pressuring commodity markets. The market is still being pressure from the news yesterday that China bought Australian feed grade wheat, which is likely a substitute for higher priced corn. March is 9 1/4 cents lower at $6.32 and May is 9 1/2 cents lower at $6.41 3/4.
Soybean futures are strongly lower at midday. Profit-taking is weighing on the market with losses triggered by concern that China may raise interest rates to slow inflation, which could slow export demand for U.S. soybeans. Recent rainfall has benefitted the soybean crop in Argentina and forecasts are calling for more rain. In addition, strength in the dollar is a bearish factor for commodity markets. March is 17 3/4 cents lower at $13.93 3/4 and May is 18 1/2 cents lower at $14.03 1/2.
Wheat futures are trading lower at midsession. Strength in the dollar and spillover pressure from losses in corn and soybeans are weighing on the market. The International Grains Council raised its 2010/11 world wheat production estimate to 647 million tonnes, up 3 million from last month. CBOT March is 13 1/2 cents lower at $7.83 3/4, KCBT March is 8 1/4 cents lower at $8.69 1/4 and MGE March is 7 1/2 cents lower at $9.03 3/4.
Cattle futures are trading lower at midday. The market continues to pull back from the record highs set on Tuesday. Reports of $1-$2 lower cash trade in Kansas compared to last week and the 90 cent decline in choice boxed beef prices are bearish factors. USDA will release a new Cattle on Feed report on Friday afternoon. Trade expectations are for December placements up 13.7% from last year. February is 65 cents lower at $108.15 and April is 40 cents lower at $112.80.
Lean hog futures are mixed at midsession. Front end contracts are being supported by the 95 cents jump in pork cutouts yesterday and firm cash markets. But deferreds are mostly lower on profit-taking from recent gains and weakness in corn that will make pork production prospects more attractive moving forward. February is 8 cents higher at $80.08 and April is 15 cents higher at $86.55.
Cotton futures are sharply higher at midday. The market is up despite strength in the dollar and weakness in corn, soybeans and wheat. Bullish fundamentals and speculative buying are contributing to the gains. March is 231 points higher at 151.25 cents and May is 202 points higher at 145.33 cents.