Corn futures are narrowly mixed at midday. Futures opened lower on profit-taking and news that China was raising interest rates to fight inflation. But losses have been trimmed on weakness in the dollar and strength in crude oil futures. Traders are also gearing up for the USDA Supply/Demand report due out Wednesday morning. March is 1/2 of a cent lower at $6.74 1/4 while December is 1/4 of a cent higher at $6.02 1/4.
Soybean futures are trading slightly higher at midsession. The market has turned higher after opening lower on the news that China was raising interest rates to fight inflation. However, positioning ahead of the USDA Supply/Demand report and weakness in the dollar have helped push prices higher. Traders are looking for USDA to tighten world soybean stocks. March is 2 1/2 cents higher at $14.27 and November is 4 1/4 cents higher at $13.70 1/4.
Wheat futures are solidly higher at midday. The market is being supported by strong demand for high protein wheat on the global market. The country of Jordan purchased 100,000 tonnes of U.S. wheat today. There is also growing concern about drought in China’s wheat areas that could threaten production. The market had been limited by general commodity weakness overnight following China raising interest rates to slow inflation. CBOT March is 21 1/2 cents higher at $8.80 1/4, KCBT March is 21 cents higher at $9.74 1/2 and MGE March is 18 1/4 cents higher at $10.09 1/2.
Cattle futures are trading mixed at midsession. Front end contracts are slightly higher on short-covering from recent losses. Cash trade has not yet developed, but is expected to be steady to lower this week compared to the $106-$107 trade last week. Gains are being limited and deferreds are lower on weakening beef prices. Choice cutouts were $1.18 and select cuts were $2.08 lower on Monday. February is 73 cents higher at $108.45 and April is 40 cents higher at $112.15.
Lean hog futures are mixed at midday. The front end contract is being supported the firm cash bids. But profit-taking is weighing on deferred contracts after hitting new highs yesterday. The June contract hit $101.50 on Monday, the highest price on record for a lean hog contract. February is 50 cents higher at $85.45 while April is 18 cents lower at $91.65.
Cotton futures are trading higher at midsession. Reports that Pakistan could import 2 million bales of cotton are helping trigger additional speculative buying in cotton. Also, the Australian Bureau of Resource Economics estimates 15%-20% of cotton plantings have been damaged by heavy rain and flooding. March is 146 points higher at 175.97 cents and December is 51 points higher at 119.38 cents.