Dry weather continues to drive wheat prices at midday

Corn futures are trading higher at midsession. Corn futures are being propped up by gains in the wheat market. Steady cash markets and tight old-crop corn supplies are supporting corn prices as well. Foreign demand for U.S. corn remains bullish for the market, as China is expected to raise its imports for 2012/13. The July is 7 3/4 cents higher at $6.32 3/4 and December is 8 ½ cents higher at $5.37 1/2.

Soybean futures are trading mixed at midsession. Soybean futures tumbled overnight on profit taking after posting gains for three consecutive days. Soybean prices are seeing some volatility this morning as futures are trading both sides of the market. However, long term fundamentals are bullish as global supplies remain tight. The July contract is down 8 cents at $14.30, and the November contract is up 2 cents at $13.08 1/2.

Wheat futures are trading higher at midsession. Wheat futures continue to rally on concerns of crop-damaging weather. Dry weather forecasts for the US Plains and Russia are pushing prices upward. Speculators covering short positions in the market over weather uncertainty are also boosting wheat prices. CBOT July is 28 cents higher at $6.85 3/4; KCBT July is 27 cents higher at $6.99; and MGE July is 17 3/4 cents higher at $7.85.

Cattle futures are trading higher at midday. Prices are steady as traders are expecting a bullish Cattle on Feed report this afternoon. The report is expected to show a 12 percent decrease in April placements, down 1.6 million head. Beef cutout values are up and packer margins are positive, lending support to the market. June cattle futures are 83 cents higher at $118.75 and August is 85 cents higher at $120.90.

Lean hog futures are trading mixed at midday. Hog futures turned lower on profit taking after rallying in early morning trade. Spillover support from the cattle market was not enough to sustain prices. Packer margins are down weighing on prices. However, losses will be limited by expected higher cash prices today. Cash prices are expected to remain steady to $1 higher. The June contract is up 5 cents at $87.48, and July is down 25 cents at $88.50.