Corn futures traded higher on Thursday. The market was supported by a bullish Supply/Demand report this morning. USDA lowered their ending stocks estimates for 2009/10 by 135 million bushels and 245 million bushels for 2010/11 due to increased projections for corn used for ethanol. Outside markets were also supportive as the stock market and crude oil was higher and the dollar lower. Further gains were limited by weakness in soybeans and favorable crop weather. July closed 5 cents higher at $3.43 1/4 and December ended 6 cents higher at $3.64 1/2.
Soybean futures ended lower on Thursday. The market was pressured by news that China canceled five to eight cargoes and delayed another five to seven cargoes of South American soybeans. USDA’s Supply/Demand report was neutral for soybeans, although ending stocks were trimmed slightly from last month. Favorable crop weather was a bearish factor, but outside markets were supportive due to strength in crude oil and weakness in the dollar. July closed 8 1/2 cents lower at $9.35 and November was 1 3/4 cents lower at $8.94 3/4.
Wheat futures were higher on Thursday. Futures rebounded from contract lows on spillover support from corn, weakness in the dollar, stronger than expected weekly export sales and a decline in USDA’s world wheat ending stocks projection. Gains are being limited by USDA’s larger than expected winter wheat production number of 1.482 billion bushels. However, USDA trimmed 2009/10 and 2010/11 ending stocks estimates slightly. CBOT July closed 5 1/4 cents higher at $4.33 1/4, KCBT July ended 4 1/2 cents higher at $4.62 1/2 and MGE July gained 4 cents to close at $4.90 1/4.
Cattle futures closed higher on Thursday. Strength in the stock market and weakness in the dollar helped support the market. Cash trade is expected to be $1-$2 lower this week, but the futures market is already well below the cash market. Further gains were limited by the continued decline in boxed beef prices. Choice cutouts were down $1.75 on Wednesday and fell another 98 cents at midday. June ended 43 cents higher at $90.08 and August ended 30 cents higher at $87.78.
Lean hog futures were mixed on Thursday. Front end contract were pressured by weakness in the cash and de4clining pork prices. The most active July contract fell to the lowest level in four months. But deferred contracts were pulled higher by the outlook for tightening hog supplies and strength in the stock market/weakness in the dollar. July closed 78 cents lower at $77.70 while October was 50 cents higher at $73.45.