Corn futures are trading lower at midday. Overnight trade was higher on weakness in the dollar amid news that Ireland would receive a bailout package from the European Union. But the dollar turned higher and the stock market is lower, which is weighing on corn prices. December is 1 cent lower at $5.19 3/4 and March was 1 1/4 cents lower at $5.33 1/2.
Soybean futures are higher at midsession. Short-covering from the strong losses on Friday is supporting the market. There is increasing concern about dry conditions in Argentina. Strong export demand for soybeans remains a supportive factor despite recent concern about China taking steps to slow economic growth. January is 15 cents higher at $12.16 1/2 and March is 15 cents higher at $12.24.
Wheat futures are higher at midday. The market is making a short-covering bounce. Winter wheat condition ratings have been poor this fall and traders are expecting a 1 to 2 point decline in the good-to-excellent rating in this afternoon’s Crop Progress report. USDA has confirmed the sales of 120,000 tonnes of U.S. soft white wheat to Egypt. CBOT Dec is 7 3/4 cents higher at $6.52 1/4, KCBT Dec is 8 1/4 cents higher at $7.17 3/4 and MGE Dec is 4 1/2 cents higher at $7.30 1/4.
Cattle futures are trading lower at midsession. Strength in the dollar and weakness in the stock market are weighing on futures. The Cattle on Feed report was neutral to slightly bearish. October placements were up 1% from last year while traders were looking for it to be unchanged. Cash trade is expected to be light this week ahead of the holiday break. December is 50 cents lower at $100.95 and February is 48 cents lower at $104.55.
Lean hog futures are trading mixed at midday. The market is choppy as there is uncertainty about the direction of the cash market this week. Pork cutouts were up $1.24 and packer margins are favorable, but market ready supplies of hogs are abundant. The Cold Storage report to be released this afternoon is expected to show the lowest total pork futures since 2005. December is 23 cents higher at $69.35 while February is 3 cents lower at $76.83.
Cotton futures are sharply lower at midsession, with the December contract down the 6 cent limit. Profit-taking continues to weigh on futures after reaching record levels two weeks ago. Strength in the dollar and weakness in the stock market is bearish for commodity markets. December is 600 points lower at 121.90 cents and March is 487 points lower at 118.28 cents.