Corn futures are trading lower at midsession. Strength in the dollar and uncertainty about demand is weighing on the market. Deliveries against the December contract were larger than expected at 1,351. Weekly export inspections reported on Monday were short of trade expectations at only 23.9 million bushels. March is 7 1/4 cents lower at $5.46 and May is 7 1/2 cents lower at $5.53 3/4.
Soybean futures are slightly higher at midday. The market is being supported by technical buying and the confirmation from USDA of the sale of 165,000 tonnes of soybeans to an “unknown destination”, which is often China. However, gains are being limited by strength in the dollar and spillover weakness from corn. January is 3 cents higher at $12.38 and March is 2 3/4 cents higher at $12.46 1/4.
Wheat futures are higher at midsession. Continued concerns about winter wheat crop conditions are supporting the market. Good to excellent ratings remain low at only 47% good to excellent. Dry weather is forecast for the western Plains over the next week to ten days. Excessive rainfall in eastern Australia is raising quality concern there. Further gains are being limited by strength in the dollar. CBOT Mar is 2 3/4 cents higher at $6.93 1/4, KCBT Mar is 6 1/4 cents higher at $7.48 3/4 and MGE Mar is 6 3/4 cents higher at $7.62 1/2.
Cattle futures are trading slightly higher at midday. Strength in the cash market last week and expectations for steady to firm cash trade again this week have helped pull futures higher. But gains are being limited by strength in the dollar again this morning that is raising concern about a slowdown in beef exports. December is 38 cents higher at $102.40 and February is 13 cents higher at $105.90.
Lean hog futures are lower at midsession. Profit-taking and some recent weakness in pork prices are weighing on futures. Futures are at a premium to the cash market, although the cash market was firm on Monday. The numbers of market ready hogs are expected to begin tightening soon and packers appear to be short-bought for slaughter needs later in the week. December is 98 cents lower at $69.05 and February is 63 cents lower at $75.60.
Cotton futures are trading higher at midday. Follow-through buying from the limit gains on Monday is supporting futures trade. Speculative buying and bullish fundamentals are helping to rally prices. March is 59 points higher at 116.35 cents and May is 69 points higher at 111.53 cents.