Corn futures are trading lower at midmorning. The market has trimmed losses slightly as midday approaches. The market continues to trade defensively as traders liquidate long positions. Sharp losses in the soy complex are causing prices trade lower as well. USDA’s crop progress report is scheduled to be released this afternoon at 3pm and is expected to show 80 percent of the corn harvested versus 69 percent the previous week. December corn is trading 11 ¾ cents lower.
Soybean futures are trading lower at midday. Soybean futures are sharply lower posting double digit losses going into midday trade. As of this writing, prices have declined over 2 percent from the session’s close. The market remains under pressure from long liquidation as well as decline declines in the palm oil market. Disappointing export demand and speculation of a large soybean crop out of South America are bearish for the market as well. November soybeans is trading 31 ¾ cents lower.
Wheat futures are trading lower at midday. Spillover pressure from the other grain markets are keeping wheat futures on the defensive. Losses are not a stark as the losses in the corn and soy markets; however continued sharp declines could spark new rounds of long liquidation in the wheat complex. December wheat at CBOT is 9 ¾ cents lower, KCBT is trading 9 ¾ cents lower; while MGE is 4 ¾ cents lower.
Live cattle futures are trading higher at midday. Nearby cattle futures are rebounding from last week’s losses; while pressure builds throughout the deferred contracts. Futures are being supported by the previous week’s higher cash prices and optimism for higher prices again this week. On the other hand, poor export demand and declining grain prices will limit gains. December cattle futures are trading 55 cents higher.
Lean hog futures are trading mixed but mostly lower. The December contract moved to the forefront as October futures contract expired on Friday. Currently, the front month contract is up 35 cents while deferred contracts are posting marginal to moderate losses. The actively watch June 2013 contract is down by almost $1. Weakness in the grain complex will likely keep futures trading defensively throughout the session. The December contract is trading 38 cents higher.