Corn, soy markets rise on yield reduction

Corn futures are trading 12 to 13 cents higher at midsession. There is currently not much fresh news concerning the corn market. Weather remains a dominant market mover at the present moment. Temperatures are expected to be cooler (lower 90s to mid 90s) in the weeks ahead but chances for rain remain slim. Although, some portions of the Midwest received rain this week, traders still expect condition ratings to decline next week. Because of the extent of drought conditions, U.S. crop forecaster Lanworth estimates crop yields plummeting to 122 bushels per acre. For more information of the state of the 2012/13 corn and soybean crop, follow Bill Nelson and Marty Foreman on the 2012 Crop Tour across the Midwest at http://www.doane.com/crop-tour/ or DoageAg on twitter.

Soybean futures are trading 30 to 35 cents higher at midsession. Prices continue to rally at midday as bullish fundamentals and drought conditions move the market. Global supply is expected to be quite tight if the US soybean crop continues to deteriorate due to current drought conditions. Currently, U.S. crop forecaster Lanworth is pegging soybean yields at a disappointing 35.7 bushels per acre. The weather outlook calls for cooler temps going into next week but dry conditions are expected to continue. For more information of the state of the 2012/13 corn and soybean crop, follow Bill Nelson and Marty Foreman on the 2012 Crop Tour across the Midwest at http://www.doane.com/crop-tour/ or DoageAg on twitter.

Wheat futures are trading 18 to 29 cents higher at midsession. Wheat futures continue to push forward at midday erasing yesterday’s losses at CBOT and KCBT. Support is tied to renewed buying interest across the grain complex and long term (bullish) fundamentals. Long term outlook for the wheat market is becoming more serious as Russian wheat production estimates continue to fall and other key wheat producing regions are expected to fall short this growing session due to adverse weather.

Cattle futures are trading higher at midsession. Cattle prices are bucking pressure from unstable beef prices and poor demand for beef products. As grain prices once again gain upward momentum, deferred contracts are finding renewed strength as the trade anticipates herd contraction due to higher costs of production. Cash trade is light at midday but prices are expected to be higher.

Lean hog futures are trading mixed but mostly higher at midsession. Overall, the market is trading higher on follow through buying and higher cash prices. Tightening supplies and rising corn prices should continue to lend support to hog futures throughout the session. Today’s cash prices are called steady to $1 higher.

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