Corn futures are solidly higher at midday. Weather premium is being added to the market as some extended forecasts are showing the possibility of a high pressure ridge developing in the southwestern Corn Belt by late June, which would bring a period of hot and dry weather. Weakness in the dollar and strength in crude oil and the stock market are also supportive factors. July is 4 1/2 cents higher at $3.62 and December is 4 1/4 cents higher at $3.82 1/2.
Soybean futures are trading higher at midsession. The market is being supported by some weather premium being added to the market, firm cash markets, the confirmed sale of 120,000 tonnes of U.S. soybeans to an “unknown destination” and outside markets. Weather forecasts are calling for some ridging in late June and early July in the southwestern Corn Belt. July is 5 cents higher at $9.57 and November is 4 cents higher at $9.29.
Wheat futures are higher at midday. Spillover support from corn and soybeans are supporting wheat futures. There has been some bullish news for wheat this week. Weekly export sales were strong and wet weather in Canada is expected to prevent some acreage from being planted to spring wheat. Rainfall in the southern Plains has slowed HRW harvest and has raised concern about quality, although drier weather is forecast for the southern Plains. CBOT July is 4 1/4 cents higher at $4.67, KCBT July is 8 1/2 cents higher at $5.04 and MGE July is 7 3/4 cents higher at $5.45 3/4.
Cattle futures are trading lower at midsession. Weakness in the cash market this week and positioning ahead of the Cattle on Feed report are weighing on futures. Trade expectations for the COF report are for May placements to be up 22%, May marketings down 3% and cattle on feed as of June 1 up 1%. June is 15 cents lower at $89.45 and October is 43 cents lower at $89.48.
Lean hog futures are mixed at midday. Front end futures are being supported by the $1.44 jump in pork cutouts on Thursday and strength in the cash market. Tight supplies of market ready hogs are supporting cash trade despite poor margins. However, deferreds are still trading lower this morning. July is 25 cents higher at $80.60 while October is 10 cents lower at $74.40.