Corn futures are down sharply at midsession. There continues to be talk of China tightening monetary policy, which could slow demand for commodities. Losses are being extended by technical selling despite generally bullish fundamentals. The size of the crop has been lowered and ending stocks are still projected to be tight, which will take some price rationing. December is 27 cents lower at $5.28 1/2 and March is 27 1/4 cents lower at $5.41 3/4.
Soybean futures trading sharply lower at midday. Concern that China will try to slow food inflation, which would slow there buying of soybeans, is weighing heavily on prices. Technical selling and long liquidation is adding to the weakness and extending the losses. January is 63 1/2 cents lower at $12.23 and March is 63 3/4 cents lower at $12.30.
Wheat futures are strongly lower at midsession. Strength in the dollar and spillover selling from corn and soybeans are weighing on the market. The losses are being extended by technical selling and long-liquidation. However, fundamental news is mostly bullish. USDA pegged winter wheat conditions at 46% good-to-excellent, which is up 1 point from last week but the lowest mid-November rating in ten years. CBOT Dec is 39 cents lower at $6.33 3/4, KCBT Dec is 34 1/4 cents lower at $6.98 1/4 and MGE Dec is 29 1/4 cents lower at $7.16 3/4.
Cattle futures are trading lower at midday. The market is being pressured by larger showlists this week. Boxed beef prices have been working higher, but there is concern about soft demand for beef seasonally. Weakness in corn prices are also bearish for deferred contracts as it could encourage an increase of cattle feeding. December is 58 cents lower at $98.65 and February is 68 cents lower at $102.15.
Lean hog futures are strongly lower at midsession. Futures are lower on ideas that cash prices will turn lower as hog supplies remain ample and slaughter weights remain large. In addition, weakness in the corn market this morning is driving ideas that hog production will increase due to cheaper feed costs. December is $1.63 lower at $68.00 and February is $1.88 lower at $73.15.
Cotton futures are sharply lower at midday. Concern that China could tighten monetary policy to control inflation has raised concern that demand for cotton will slow. In addition, a cotton production estimate from India puts the crop up 16% from last year. December is 477 points lower at 133.98 cents and March is 420 points lower at 130.00 cents.