Corn futures are trading strongly higher at midday. The market is being supported by USDA reporting the sale of 115,000 tonnes of U.S. corn to China for 2009/10 delivery. Short-covering from the strong losses on Tuesday is also supporting futures. But further gains are being limited by further strength in the dollar this morning. May is 7 1/4 cents higher at $3.54 3/4 and July is 8 1/2 cents higher at $3.62 1/4.
Soybean futures are higher at midsession. Spillover support from corn and short-covering following the decline on Tuesday are pushing futures higher. However, gains are being limited by reports that China has purchased soyoil and soybeans from Argentina instead of the U.S. Favorable weather in southern Brazil and Argentina are helping the record harvest progress. May is 1/2 of a cent higher at $9.83 1/4 and July is 1/2 of a cent higher at $9.93 1/2.
Wheat futures are trading higher at midday. Short-covering and spillover support from corn are supporting wheat futures trade. But gains are being limited by further strength in the dollar and generally bearish fundamentals. Winter wheat conditions ratings are well above normal and good spring wheat planting progress point to favorable yield potential. CBOT May is 1 3/4 cents higher at $4.80, KCBT May is 1 1/4 cents higher at $4.93 3/4 and MGE May is 1 1/2 cents higher at $5.17 3/4.
Cattle futures are trading lower at midsession. Follow-through selling from Tuesday and weakness in the cash market on Tuesday are weighing on futures. Cash trade on a live basis developed generally at 50 cents to $1 lower than last week at $98-$98.50. Weakness in futures is being limited by firm boxed beef prices and a small recover in the stock market this morning. April is 50 cents lower at $97.55 and June is 58 cents lower at $93.15.
Lean hog futures are mixed at midday. Strength in the cash market and the bounce in the stock market are supporting futures. However, June is trading slightly lower on the 88 cent drop in pork cutouts on Tuesday. Tight supplies of market ready hogs are forcing packers to increase bids. June is 10 cents lower at 84.85 while July is 5 cents higher at $84.75.