Grains mixed at midday
Corn futures are trading lower at midday. Corn prices were trading slightly higher early morning but have now turned lower as traders and investors liquidate their long positions in the market. Prices are also pressured by the rapidly advancing 2013 corn harvest. USDA reported harvest as 39 percent complete, up 13 percentage points from the previous week. December corn is trading 1 ¾ cents lower.
Soybean futures are trading 3 to 5 cents higher at midday. Futures continue to trade quietly, giving back some of the overnight gains. The market recovered overnight on bargain buying after Monday’s steep losses. However, prices are seeing additional resistance as soybean harvest quickly progresses. Soybean harvest jumped to 22 percent harvested up 12 percentage points from the previous week.
Wheat futures are trading 1 to 4 cents lower at midday. Prices across all three exchanges are lower on pressure from long liquidation and sluggish demand for U.S. wheat. Late last week prices rallied as news circulated that Russia may have to limit grain exports due to inflations worries; however the momentum seems to have fizzled as no further information on this matter has been supplied.
Live cattle futures are trading moderately lower at midday. Cattle futures seemed to be set for a rebound at the opening of pit trade but soon turned lower pressured by weakness in the wholesale beef market and cash trade uncertainty. Expectations are for a steady cash trade this week but traders are moving with caution due to poor packer margins and declining beef demand.
Lean hog futures are trading lower at midday. Prices were expected to trade moderately higher on spillover buying from yesterday’s impressive rally and continued strength in the cash market; however steep declines in the cattle complex are pressuring midday prices. The surge in wholesale pork prices and continued cash strength will underpin the market, limiting losses.