Corn futures are trading higher at midday. The market is being supported by fresh export demand and some risk premium being added back into the market ahead of the USDA reports due out Wednesday morning. USDA reported export sales to Mexico and “unknown destination”, which is likely China. USDA is expected to lower the U.S. ending stocks estimate and Argentina’s production forecast. March is 4 1/4 cents higher at $6.11 1/4 and May is 4 1/4 cents higher at $6.19 3/4.
Soybean futures are lower at midsession. Light profit-taking from the gains on Monday are weighing on futures. However, losses are being limited by more hot and dry weather in Argentina that is hampering soybean crop condition. In addition, USDA reported the sale of 116,000 tonnes of soybeans to China. USDA reports will be released on Wednesday morning. U.S. ending stocks are expected to be lowered to very tight levels. January is 8 1/4 cents lower at $13.65 and March is 8 cents lower at $13.72 1/2.
Wheat futures are trading mixed at midday. Concern about cold weather in the Plains damaging some of the HRW crop and continued problems with flooding and wet conditions in Australia that is hurting wheat quality are supportive factors. But gains are being limited and some contracts are lower on selling related to index fund rebalancing. CBOT March 1/4 of a cent lower at $7.67, KCBT March is 1 1/2 cents higher at $8.43 and MGE March is 3 3/4 cents higher at $8.69.
Cattle futures are trading higher at midsession. Firm boxed beef prices and ideas that cash trade might be steady to firm this week are supporting the market. Choice boxed beef prices were up $0.65 on Monday and disrupted marketings due to snow could help cash trade in the $106-$107 range. Gains are being limited by profit-taking. February is 70 cents higher at $107.65 and April is 60 cents higher at $112.05.
Lean hog futures are higher at midday. Wintery weather in the Midwest is disrupting marketings. That coupled with the $1.11 jump in pork cutout values on Monday is supportive for the cash market. However, backed up marketings early in the week will eventually make it to market, so futures gains are being limited on ideas that cash bids could turn lower again late in the week. February is 53 cents higher at $80.23 and April is 25 cents higher at $84.90.
Cotton futures are sharply higher this morning. Speculative buying is supporting the market ahead of the USDA reports due out on Wednesday morning. March cotton is the limit 400 points higher at 147.25 cents and May is 400 points higher at 143.18 cents.