Corn futures are trading slightly lower at midday. The market was initially supported by strength in the stock market and crude oil and weakness in the dollar. News that China would allow the value of the yuan to float has raised ideas that China’s buying power would improve. But the market is lower on generally favorable crop weather. USDA’s Crop Progress report this afternoon is expected to show strong crop ratings. July is 3/4 of a cent lower at $3.59 1/2 and December is 1 1/4 cents lower at $3.79 1/4.
Soybean futures are higher at midsession. The weekend news that China would allow the yuan to float was supportive as it should allow the world’s larger soybean buyer more purchasing power. Strength in the stock market and crude oil and weakness in the dollar are also supportive. USDA confirmed that sale of 120,000 tonnes of U.S. soybeans to China for the 2009/10 marketing year. July is 5 1/2 cents higher at $9.66 1/2 and November is 11 1/4 cents higher at $9.41 3/4.
Wheat futures are lower at midsession. Profit-taking and seasonal harvest pressure is weighing on futures trade. Export demand remains limited as weekend export deals were filled by export competing countries. Weekly export inspections reported this morning were only 11.5 million bushels. Losses are being limited by weakness in the dollar and strength in the stock market. CBOT July is 3 cents lower at $4.58 3/4, KCBT July is 1 1/2 cents lower at $4.95 3/4 and MGE July is 1/4 of a cent lower at $5.38.
Cattle futures are sharply higher at midsession. The market is being supported by ideas of improved demand as the stock market is higher and the U.S. dollar index is lower. The outside market strength is coming from news that China will allow greater currency flexibility. There is some optimism that boxed beef prices will improve in the near-term as retailers restock inventory following the Father’s Day weekend. June is 85 cents higher at $90.15 and August is $1.45 higher at $89.65.
Lean hog futures are trading higher at midday. Strength in pork cutouts on Friday and steady cash trade are supporting futures trade. China has announced plans to make their currency more flexible, which has helped the stock market rally and could boost import meat imports. Fund buying has helped extend gains. July is $1.23 higher at $82.10 and August is $1.53 higher at $84.18.