Corn futures are trading higher at midday. Spillover strength from wheat, weakness in the dollar and the outlook for very tight ending stocks are supporting corn trade. In addition, reports indicate that the Chinese government may soon begin stockpiling corn for state reserves is bullish as they may need to initially buy 9 million tonnes of corn to replenish stocks. March corn is 12 1/2 cents higher at $6.61 1/4 and May is 12 1/4 cents higher at $6.70 1/4.
Soybean futures are higher at midsession. The rally in corn and wheat are helping to support futures as the crops are still competing for acreage this spring. However, gains are being limited by news that China has canceled the sale of two U.S. soybean cargoes. Also, weekend rainfall in Argentina is benefiting soybean crop production potential. March is 5 1/4 cents higher at $14.27 3/4 and May is 6 cents higher at $14.37 1/4.
Wheat futures are solidly higher at midday. News that Algeria bought 600,000 tonnes of wheat and has made purchases of 1 million tonnes so far this month is bullish. The sales may not come from the U.S., but the exports will further tighten global stocks for high quality wheat. Weakness in the dollar and more rain and flooding in Australia are also bullish factors for wheat. CBOT March is 19 cents higher at $7.92 1/4, KCBT March is 16 cents higher at $8.76 and MGE March is 13 1/4 cents higher at $9.03 1/2.
Cattle futures are strongly higher at midsession. Boxed beef prices were up strongly again on Monday and cash trade is expected to be firm this week. Weakness in the dollar and strong export sales in November have also triggered fund buying. November beef exports were up nearly 50% from the year earlier. Chinese President Jintao is visiting the U.S. and traders are looking for comments from him that China will restart imports of U.S. beef. February is $1.68 higher at $111.05 and April is $1.60 higher at $115.35.
Lean hog futures are trading higher at midday. Spillover strength from cattle is supporting hog futures despite shaky cash fundamentals. Pork cutouts were down 21 cents on Monday and cash trade is mixed. Weakness in the dollar this morning is a bullish factor for pork exports. February is $1.53 higher at $81.05 and April is $2.03 higher at $87.30 cents.
Cotton futures are sharply higher at midsession. Front end contracts are up the 400 point limit on spillover support from the grain market. Weakness in the dollar and strength in the stock market has renewed speculative interest in cotton. March is 400 points higher at 145.44 and May is 400 points higher at 140.37 cents.