Corn futures are trading strongly lower at midday. The market is being pressured by profit-taking after the recent rally to 29 month highs. Concern about hot and dry weather hurting the corn crop in Argentina has eased some as cooler temperature are being reported and chances of rain are being forecast. March is 11 1/2 cents lower at $6.09 and May is 11 1/2 cents lower at $6.17.
Soybean futures are trading lower at midsession. Profit-taking is weighing on the market following recent strength. The rally in the dollar index and strong losses in crude oil are also weighing on the market. Weather is a concern for the soybean crop in Argentina, but cooler temperatures and some chances of rain are being forecast. January is 12 1/4 cents lower at $13.58 and March is 12 cents lower at $13.67.
Wheat futures are lower at midday. Spillover selling from corn and soybeans are contributing to some profit-taking weakness in wheat. The rally in the dollar index has also contributed to the losses. But weakness is being limited by concern about the conditions of the winter wheat crop, especially in the western Plains and due to the crop problems and flooding in Australia’s wheat areas. CBOT March is 6 1/2 cents lower at $7.99, KCBT March is 4 1/4 cents lower at $8.58 3/4 and MGE March is unchanged at $8.89.
Cattle futures are trading lower this morning. Ideas that packers will be slowing slaughter and will eventually lead to lower cash prices has trumped the firm early week cash trade. Cash trade has been reported at $106-107, the highest level in seven years. Packer margins remain poor, although choice cutouts were up $1.02 on Monday. February is 38 cents lower at $106.60 and April is 50 cents lower at $110.45.
Lean hog futures are lower at midday. Follow-through selling from the profit-taking losses on Monday and weakness in the cash market are weighing on futures. Further losses are being limited by the 24 cent increase in pork cutout prices on Monday and on expectations that market ready hog supplies will tighten this month. February is 48 cents lower at $77.50 and April is 40 cents lower at $82.15.
Cotton futures are slightly lower at midsession. Futures are being pressured by profit-taking from the rally to historic highs has continued today. However, losses are being limited by bullish supply/demand fundamentals. March is 19 cents lower at 142.01 and May is 30 points lower at 136.00 cents.