Corn futures are trading sharply higher at midsession. The market is being supported by ideas that the sell-off last week was overdone, positioning ahead of the January 12 USDA report, strength in crude oil and continued concerns about dry weather in Argentina that is hurting corn production prospects. March is trading 16 1/2 cents higher at $6.11 1/2 and May is 16 1/4 cents higher at $6.20 1/4.
Soybean futures are trading strongly higher at midday. Positioning ahead of the USDA reports due out on Wednesday and dry weather forecasts for Argentina are supporting trade. Pre-report trade estimates call for a decline in USDA ending stocks estimate. Strength in crude oil is also supportive for soybean oil and the soy complex. January is 20 1/2 cents higher at $13.78 1/4 and March is 21 1/2 cents higher at $13.86 1/2.
Wheat futures are higher at midsession. Spillover support from corn and soybeans and positioning ahead of the USDA reports due out on Wednesday are supporting futures trade. In addition, news that Egypt bought some U.S. wheat in a weekend tender was supportive. There is some concern that cold temperatures in the Plains could damage the winter wheat crop. Condition ratings heading into dormancy were already low. CBOT march is 6 cents higher at $7.80, KCBT March is 5 3/4 cents higher at $8.52 and MGE March is 5 cents higher at $8.75 3/4.
Cattle futures are trading higher at midday. Winter weather in the Plains has raised concern about delayed marketings and a decline in feedlot performance. Cash trade was expected to be slightly lower this week due to adequate supplies of market ready cattle. Gains in futures are being limited by poor packer margins and the decline in beef prices on Friday. February is 63 cents higher at $107.00 and April is 73 cents higher at $111.28.
Lean hog futures are higher at midsession. Spillover support from the gains in cattle and higher pork cutout values on Friday are supporting the market. There is also some bullish optimism that a pending resolution with Mexico over trucking will be resolved soon, which could lead to Mexico reducing tariffs on U.S. pork. February is 68 cents higher at $80.10 and April is 80 cents higher at $84.85.
Cotton futures are solidly higher at midday. The market is gearing up for the USDA reports due out on Wednesday. Tight ending stocks are expected and traders will be watching USDA’s global supply/demand revisions closely. March is 180 points higher at 142.40 cents and May is 189 points higher at 138.40 cents.