Corn futures are trading higher despite a bearish WASDE report. Futures are bucking pressure from USDA's bearish projections. Corn production was estimated 19 million bushels higher than the previous month which was approximately 60 to 75 million bushels higher than trade expectations. This increase was driven by a fractional increase in yield estimates. Ending stocks were raised to 28 million bushels to 647 million bushels as a result of higher production and increased import estimates. December corn futures are trading 5 cents higher.
Soybean futures are trading defensively midmorning. USDA's WASDE report was bearish for soybean market as was expected. USDA revised soybean production estimates upward by over 100,000 million bushels as a result of the increase in soybean yield estimates. Yield estimates were raised 1.5 bushels per acre. Total new crop production was pegged at 2.97 billion bushels. January soybean futures are trading 30 cents higher.
Wheat futures are trading slightly lower midmorning. WASDE estimates for wheat were bearish for both the U.S. and global balance sheets. U.S. ending stocks were revised upward 50 million bushels. Global ending stocks were reported approximately 1 million tonnes higher versus expectations of a 1.5 million tonne decline. Global production was cut less than expected while global usage was cut more than expected. December wheat at CBOT is trading 8 cents lower.
Live cattle futures are trading randomly mixed midmorning. There is not much fresh news surrounding the market. Futures are being supported by improvement in export demand and expectations for steady cash prices this week. Nonetheless, pressure stemming from lower wholesale beef are limiting upside movement. December cattle futures are trading 33 cents higher.
Lean hog futures are trading mostly lower midmorning. Recent market gains are being trimmed on profit taking and short term ample hog supplies. Long term demand concerns coupled with lower cash prices are contributing to tumbling prices. December hog futures are trading 20 cents lower.