Corn futures are trading lower at midday. Strength in the dollar index and light profit-taking from the rally to new highs last week are weighing on the market. However, losses are being limited by spillover support from wheat and USDA’s bullish supply/demand projections for the current crop year. Stocks-to-use are expected to match the tight level of 1995/96. March is 2 cents lower at $7.04 1/2 and December is 1 1/2 cents lower at $6.16 1/4.
Soybean futures are steady to higher at midsession. Short-covering from the losses on Friday is providing light support to the market. NOPA crush for January was estimated at 144.6 million bushels, which was slightly above trade expectations. But gains are being limited by strength in the dollar, the outlook for a large Brazilian crop and improved crop conditions in Argentina. March is unchanged at $14.16 and November is 3 1/4 cents higher at $13.82 3/4.
Wheat futures are solidly higher at midday. The market is being supported by concern about the HRW wheat crop and drought in China’s growing regions. The warm-up in the Plains is melting the protective snowcover, leaving the crop vulnerable to a cold-snap. In addition, USDA announced wheat sales to Iraq and Tunisia over the weekend. CBOT March is 13 1/2 cents higher at $8.80 1/2, KCBT March is 15 cents higher at $9.88 and MGE March is 12 cents higher at $10.29 3/4.
Cattle futures are trading higher at midsession. Firm cash trade late last Friday in Texas at $107 was supportive as that was mostly steady with the previous week. However, further gains are being limited by weakness in boxed beef prices. On Friday, choice cutouts were down $1.34. February is 83 cents higher at $108.60 and April is 70 cents higher at $113.40.
Lean hog futures are lower at midday. Losses in the cash market last Friday and the 64 cent drop in pork cutouts are weighing on futures. The national average cash prices were down $3 on Friday. However, losses were limited by strong demand for pork. USDA estimated pork exports in 2010 as being up 3% from last year. February is 70 cents lower at $85.70 and April is 83 cents lower at $91.55.
Cotton futures are trading mostly lower at midsession. Profit-taking from the rally to record high levels last week are weighing on the market. Further losses are being limited by bullish supply/demand fundamentals and the need to compete for acreage this spring. March is 117 points lower at 188.80 cents and December is 280 points lower at 126.20 cents.