Corn futures are higher at midday. News that China has purchased more U.S. corn is providing support. China bought six cargoes totaling about 300,000 tonnes. The rally in gold to new highs has also encouraged some fund buying in corn. However, gains are being limited by the strong pace of corn planting and rainfall in the Corn Belt that should benefit the emerging crop. July is 3 1/2 cents higher at $3.80 1/2 and December is 1 cent higher at $3.94.
Soybean futures are trading lower at midsession. Spillover support from corn and talk that China may buy more U.S. corn and soybeans initially supported futures. But the market has turned lower on strength in the dollar and the underlying bearish influence of a record soybean harvest in South America. July is 2 1/4 cents lower at $9.63 3/4 and November is 3 1/4 cents lower at $9.34 1/4.
Wheat futures are higher at midday. Spillover support from corn helped push futures higher and short-covering has extended gains. However, fundamentals remain bearish. Export demand for U.S. wheat remains sluggish and U.S. and global wheat stocks remain large. USDA is forecasting 2010/11 wheat ending stocks at a 23-year high. CBOT July is 7 cents higher at 5.00, KCBT July is 4 1/2 cents higher at $5.14 and MGE July is 2 1/4 cents higher at $5.35 1/2.
Cattle futures are trading lower at midsession. Profit-taking and concern about globally economies and export demand are weighing on futures. There is concern that boxed beef prices will turn lower once Memorial weekend orders are filled. However, cash market trade has been firm this week and choice boxed beef prices are at its highest level since July 2008. June is 78 cents lower at $96.03 and August is 55 cents lower at $94.83.
Lean hog futures are mixed at midday. The market is choppy with some support coming from the 86 cent rally in pork cutouts on Tuesday. But steady to lower cash trade this week are limiting gains. Packer margins have tightened and live supplies are adequate for packers reduced slaughter schedules. June is 18 cents higher at $85.50 while July is 3 cents lower at $85.45.