Corn futures are strongly higher at midsession. The spot contract rallied to a 26 month high on the decline in the dollar and strength in crude oil and the stock market. Outside markets are leading the rally, but ideas that USDA will lower their yield and production estimates on November 9. Further gains are being limited by weekly export sales being reported at 18.2 million bushels was below pre-report trade expectations. December is 11 cents higher at $5.92 and March is 11 cents higher at $6.05 1/2.
Soybean futures are sharply higher at midday. The spot contract has rallied to a 16 month high and most contracts are at contract highs. Futures have rallied on weakness in the dollar and strength in crude oil and gold. In addition, weekly export sales of 58.3 million bushels of commitments for 2010/11 crop were above the range of pre-report expectations. January is 35 cents higher at $12.72 1/2 and March is 36 cents higher at $12.80 3/4.
Wheat futures are trading strongly higher at midsession. The declining value of the dollar and spillover support from corn and soybeans are supporting trade. Poor winter wheat conditions ratings and more dry weather in parts of the Plains and Midwest remain bullish factors. The market is higher despite weekly export sales for this marketing year at 20.8 million bushels, which was at the low end of trade expectations. CBOT Dec is 22 3/4 cents higher at $7.13, KCBT Dec is 21 1/4 cents higher at $7.67 3/4 and MGE Dec is 17 3/4 cents higher at $7.80.
Cattle futures are trading higher at midday. Commodity markets are being supported by weakness in the dollar. Strength in the stock market is also a bullish factor for beef demand. Strong higher grain prices are supportive for deferred contracts as increased feed costs could limit cattle on feed. Near-term fundamentals are mostly bearish as beef prices ease and as fed cattle trade has been lower this week. December is 15 cents higher at $97.85 and February is 33 cents higher at $101.50.
Lean hog futures are strongly higher at midsession. The rebound in the cash market yesterday and outside markets are leading to the short-covering rally. Weakness in the dollar is supportive for pork exports and strength in corn prices could curb hog numbers moving forward. Cash prices were up nearly $2 on average yesterday and pork cutouts were up 24 cent yesterday. December is $1.18 higher at $67.95 and February is $1.10 higher at $73.65.
Cotton futures are sharply higher at midday. Futures have rallied to new record high for the third consecutive session. Fund buying is being driven by strong demand from China and outside markets. The dollar is down strongly today and the stock market is higher. Weekly export sales reported this morning were very strong again at 560,800 bales. December is 358 points higher at 139.10 cents and March is 362 points higher at 135.28 cents.