Corn futures are trading lower at midsession. Strong losses in crude oil and the stock market and strength in the dollar are bearish factors. Rain in the Midwest and forecasts for some warmer weather next week points to favorable early season growing conditions. But losses are being limited by news that China has purchased two more cargoes of U.S. corn and weekly export sales of 53.3 million bushels of old-crop and 9.4 million of new-crop were above trade expectations. July is 1/4 of a cent lower at $3.59 and December is 3/4 of a cent lower at $3.77 1/4.
Soybean futures are mixed at midday. The market was lower most of the morning on pressure from outside markets. Crude oil and the stock market are strongly lower and the dollar is higher. The nearby contract fell to the lowest level in two months. But losses were limited and front end futures turned higher due to the tight cash market and good demand from China. Talk continues that China has switched some soybean orders from Brazil to the U.S. July is 4 cents higher at $9.42 1/2 while November is 1/4 of a cent lower at $9.05 1/2.
Wheat futures are lower at midsession. The sharp decline in the stock market and strength in the dollar are weighing on futures. Concern about the financial crisis in Europe continues to weigh on outside markets. Sluggish export demand and abundant global wheat supplies remain bearish factor. Weekly export sales of 9.2 million bushels of old-crop and 7.5 million of new-crop were below trade expectations. Shipments last week were well below the pace needed to reach USDA’s export projection. CBOT July is 3 1/2 cents lower at $4.65 1/4, KCBT July is 5 cents lower at $4.86 1/2 and MGE July is 3 1/2 cents lower at $5.08 1/4.
Cattle futures are sharply lower at midday. Futures are being pressured by sharp losses in the stock market and weakness in boxed beef prices. An unexpected decline in U.S. jobless claims has led to uncertainty about beef demand. Boxed beef prices appear to have topped, with choice cutouts down nearly $1 on Wednesday. Cash trade has been weak so far this week, down $2 live and $6-$7 lower on a dressed basis. June is 93 cents lower at $91.50 and October is $1.35 lower at $91.35.
Lean hog futures are trading lower at midsession. Outside markets are pressuring trade. The June contract hit an eight-week low as fund selling triggered sell-stops. The stock market is down sharply this morning on an unexpected jump in U.S. jobless claims. Pork cutouts were down $2.30 on Wednesday and the cash market is steady to lower again this morning. June is 93 cents lower at $81.10 and July is 58 cents lower at $82.40.