Grains extend gains at midday
Corn futures are trading higher at midday. Corn futures are extending gains despite strength in the dollar index. Strength in the soy and wheat markets is spilling over into corn market midmorning. Futures are expected to trade with more volatility as the trade awaits the release of the October WASE estimates. Pre report trade estimates peg the average production of the 2012 corn crop at 10.601 billion bushels, 126 million bushels below the September estimate. December corn is trading 1 ½ cents higher.
Soybeans futures are trading higher at midday. Soybean futures climbed by as much as 22 cents before declining. Futures posted firm gains overnight on short covering and bargain buying. October WASDE estimates are scheduled to be released on Thursday and pre report trade estimates forecast soybean production at 2.759 billion bushels with an average yield of 37.006. Although yields and production estimates are forecast higher than September estimates, Oil World reports supplies will tight due poor production in South America. November soybeans are trading 7 cents higher.
Wheat futures are trading higher at midday. Wheat futures continue to exhibit strength across all three exchanges. Global supply worries are the predominant force driving market prices higher ahead of the October WASDE report. Freezing temperatures across the U.S. Plains is suspecting of damaging the impeding winter wheat crops, thus providing additional support for the KCBT market. December wheat at CBOT is trading 7 ¼ cents higher; KCBT is trading 8 ¾ cents higher; and MGE is trading 5 ½ cents higher.
Live Cattle futures are trading higher at midday. As expected cattle futures are pushing higher on follow through buying and the rebound in wholesale beef prices. Both choice and select cuts increased over 50 cents, which has attracted buying interest into the complex. Cash trade has not developed yet but is called steady versus last week’s trade. October cattle is trading $1.30 cents higher while December is trading 53 cents higher.
Lean hog futures are trading mixed at midday. Lean hog futures are randomly mixed across the board. Cash is anticipated to slow down with bids steady to lower due to ample pork supply at the moment. It is suspected that demand has slowed slightly due to grocers buying more than enough pork for National Pork Month (October). However, seasonal demand as the holiday’s approach should limit losses and provide support over the next few weeks. October is trading 18 cents higher while December is trading 2 cents higher.