Corn futures are higher at midsession. A friendly Supply/Demand report for corn is helping support futures. USDA lowered their ending stock estimate for 2009/10 to 1.738 billion bushel, down about 125 million from trade estimates and down 161 million from last month. The first 2010/11 ending stocks estimate of 1.818 billion bushels was slightly below trade expectations. Further gains are being limited by the strong pace of planting and strength in the dollar. July is 5 cents higher at $3.75 1/2 and December is 4 1/2 cents higher at $3.91.
Soybean futures have turned higher at midday. Futures opened lower on strength in the dollar, weakness in crude oil and the stock market and USDA’s Supply/Demand report. USDA left 2009/10 ending stocks unchanged at 190 million bushels and pegged 2010/11 ending stocks at 365 million, up slightly from the average trade guess. But spillover support from corn and planting progress being slightly below trade expectations last week at 30% are providing support. July is 1 3/4 cents higher at $9.62 3/4 and November is 3 1/4 cents higher at $9.38.
Wheat futures are trading higher at midsession. The market is making a short-covering bounce with help from the rally in corn. The Supply/Demand report was neutral to slightly bearish. USDA left 2009/10 ending stocks at 950 million bushels, but ending stocks for 2010/11 are expected to grow to 997 million bushels, which was slightly above the average pre-report trade estimate. Outside markets are slightly bearish as the dollar is trading higher. CBOT July is 4 cents higher at $4.96 3/4, KCBT July is 4 cents higher at $5.12 and MGE July is 5 1/4 cents higher at $5.33 1/4.
Cattle futures are trading steady to higher at midday. The strong tone in the cash market and future’s discount to cash are providing some support. But gains are being limited by strength in the dollar and recent volatility in the stock market that has raised concerns about demand. Select cutouts were down on Monday, raising some ideas that beef demand will slow once Memorial Day orders are filled. June is unchanged at $96.70 and August is 23 cents higher at $95.30.
Lean hog futures are higher at midsession. The market is being pressured by weakness in the cash market and strength in the dollar. Packers have been lowering bids amid poor margins despite the 40 cent jump in cutouts on Monday. June is 78 cents lower at $85.08 and July is $1.05 lower at $85.10.