Corn futures are trading higher at midday. The spot month has rallied to the highest level in 28 months. Hot and dry weather in Argentina is threatening corn production prospects. USDA reported the sales of 116,000 tonnes of corn to an “unknown destination”, which often proves to be China. March is 3 3/4 cents higher at $6.06 and May is 4 cents higher at $6.14 1/4.
Soybean futures are higher at midsession. The nearby contract has hit the highest level in 5 1/2 weeks on spillover support from corn and due to a strike at Argentine crushing plants. The strike could slow export shipments of soybean oil from the world’s largest exporter. Hot and dry weather is a concern for the soybean crop in Argentina, although most favorable weather is being reported in Brazil. January is 6 cents higher at $13.32 1/4 and March is 5 cents higher at $13.42 1/2.
Wheat futures are trading slightly higher at midday. The market is being supported by spillover strength in corn and the daily report of 250,000 tonnes of sales of U.S. and Australian wheat to Iraq. Gains are being limited by drier and warmer weather in eastern Australia, which is improving harvest conditions. CBOT March is 1 cent higher at $7.66, KCBT March is 1 3/4 cents higher at $8.28 1/4 and MGE March is 1 cent higher at $8.58 3/4.
Cattle futures are trading lower at midsession. Futures are being pressured by profit-taking as the market eases from the two year highs set in overnight trade. Cash trade is expected to be firm this week, but futures were trading at a premium to the expected cash market. December is 75 cents higher at $102.10 and February is 3 cents lower at $105.78.
Lean hog futures are strongly higher at midday. Strength in the cash market and expectations of tightening hog supplies as we move into next year are supporting the market. The February contract has rallied to the highest level in three months. Speculative of strong export demand has also helped fuel the rally. February is $1.43 higher at $77.40 and April is $1.10 higher at $81.50.
Cotton futures are sharply lower at midsession. After hitting record high levels on Tuesday, futures are trading limit down. A decline in China’s cotton prices helped trigger the losses today. March is 500 points lower at 154.12 cents and May is 500 points lower at 139.29 cents.