Corn futures are trading 13 to 15 cents lower at midday. Corn futures are tumbling as soybean and wheat prices fall. Lack of fresh news concerning the market and slight pressure from profit taking will also keep prices on the defensive today. The critical supply/demand situation of the market will continue to underpin the market, but traders believe the markets are looking for more bullish news to provide direction moving forward.
Soybean futures are trading 10 to 15 cents lower at midday. Soybean futures are experiencing much volatility today as futures have traded both sides of unchanged during the morning session. At one point during the morning trade, soybean futures are trading up on very bullish news this morning. First, export shipments totaled 597,300 tonnes this week, topping estimates of 521,200 tonnes. Bean prices were also supported by announcements by the USDA that export sales of 202,000 tonnes of soybeans were sold to an unknown destination, 165,000 tonnes of soybean and 55,000 tonnes of soybean oil were sold to China for delivery during the 2012/13 marketing year.
Wheat futures are 10 to 11 cents lower at midday. Currently, wheat prices are lower across all three exchanges on lack of direction in the market. The recent sell off in the dollar index and IGC's (International Grain Council) forecast Russian wheat production 4 million tonnes lower at 41 million helped to support prices early on but the downturn in the bean market pulled wheat prices lower. Today's export shipments were slightly bullish today and should lend support to the market.
Live cattle futures are trading 42 cents lower at midday. Live cattle futures are under pressure as weak export data implies a slowdown in beef demand. Weekly beef export sales totaled 14,700 tonnes this week, approximately 6,200 tonnes lower than the previous week's sales. Declining beef prices and undeveloped trade in the cash market are also pressuring futures at midday. Cash trade is anticipated to be steady to higher this week.
Lean hog futures are trading mixed at midday. Nearby October and December contracts have pushed higher but remain vulnerable to price declines due to the overall bearish tone of the market. Large hog supplies are weighing on the market therefore keeping cash prices under pressure. Packers have slaughtered 1.272 million hogs this week approximately 20,000 head more than the previous week.