Corn futures are solidly lower at midday. Profit-taking is weighing on the market with outside markets helping to extend losses. The dollar is firm while gold and crude oil are lower this morning. More unconfirmed reports that China has bought more Australian feed grade wheat are bearish for corn. March is 11 3/4 cents lower at $6.43 1/2 and December is 8 cents lower at $5.79 1/4.
Soybean futures are strongly lower at midsession. USDA confirmed the 2.74 million tonne sale to China announced last week Thursday. The sale was originally put in the 2010/11 marketing year so when USDA switched it to 2011/12, front end futures led the decline. Profit-taking and outside markets are also pressuring futures as gold and crude oil are lower while the dollar is firm. March is 20 cents lower at $13.84 1/2 and November is 18 1/2 cents lower at $13.18 1/4.
Wheat futures are mixed at midday. Strength in the dollar and profit-taking are weighing on CBOT futures this morning. However, KCBT and MGE are steady to higher on support from continued dry weather in the U.S. Plains and concern about the tightening global supply of high quality wheat. Australia reported December wheat stocks were up in December, but 38% was classified as feed grade. CBOT March 4 3/4 cents lower at $8.30 1/2, KCBT March 1/4 of a cent higher at $9.08 1/4 and MGE March is 1/2 of a cent higher at $9.50 3/4.
Cattle futures are trading lower at midsession. The market is being pressured by some weakness in the cash market early this week and spillover weakness from crop markets. Cash trade has developed at $105, down $1 from last week and the rally in boxed beef prices have stalled. The bearish Cattle on Feed report is also continuing to weigh on the market. February is 48 cents lower at $106.30 and April is 40 cents lower at $111.28.
Lean hog futures are solidly higher at midday. Strength in pork prices and the cash market are supporting front end contracts. News that South Korea was dropping tariffs on some imported port through June is supportive as it demonstrates their need for pork as they fight foot-and-mouth disease. Further gains are being limited by the futures premium to cash. February is $1.35 higher at $82.00 and April is $1.10 higher at $87.35.
Cotton futures are mostly lower at midsession. The nearby March is near steady, but profit-taking from recent gains are weighing on deferreds. Commodity markets are being pressured by the firm dollar and weakness in gold and crude oil. March is 36 points higher at 162.30 while December is 434 points lower at 109.40.