Corn futures are mixed at midday. Futures are stabilizing after Tuesday’s decline in response to USDA’s supply and demand update. Cash prices remain firm which is supportive to nearby futures contracts. In addition, outside markets are providing support with crude oil higher and the dollar index lower. However, lower soybean futures are holding corn prices in check. May is 1 1/4 cents higher at $6.36 and December is 1 cent higher at $5.44 1/2.
Soybean futures are trading lower at midsession. Soybean markets are extending the selloff that began toward the end of Tuesday’s trading session in the early going today. Technical selling pressure appears to be the most popular excuse for weakness. On Tuesday morning, USDA released what many considered a bullish report, but by the end of the session, prices were down. Managed futures accounts had established record levels of open interest ahead of the report. There is speculation that funds are now selling to lock in recent gains and moving the money to other investment opportunities. The May contract is down 9 cents at $14.17 and November is 5 cents lower at $13.59 3/4.
Wheat futures are trading mostly higher at midday. There are ideas yesterday’s double-digit losses were overdone due to fund selling. Plus, CBOT wheat is up a bit on ideas that frost may have nipped some soft red winter wheat overnight and more evidence of improving export interest. And MGE futures are up double-digits on a new long-longterm weather forecast that calls for drier and warmer than normal conditions to return to the Northern Plains. The outside markets are also a supporting element today. CBOT May is 2 cents higher at $6.27 3/4, KCBOT May is steady at $6.41; and MGE May is 13 3/4 cents higher at $8.47 1/2.
Cattle futures are trading mostly higher at midday. Cattle trade has been choppy so far, trading both sides of Tuesday’s close. Futures are deeply oversold and overdue for a bounce, but demand concerns linger. Beef prices were mixed on Tuesday, showing no strong sign yet of seasonal improvement. However, strength in the stock market is seen as positive for the economy overall, helping to underpin cattle futures. June cattle futures are 20 cents higher at $114.50 and August is also 20 cents higher at $117.50.
Lean hog futures are trading lower at midday. Additional declines in cash hog and pork prices on Tuesday have pressured hog futures. The pork cutout value fell to a new low for the year at $77.89 on Tuesday and cash hog prices are near the year’s low. Cash prices reported for Wednesday morning are generally steady to 50 cents lower. There are few signs that pork demand is improving and cash and futures hog prices will struggle as long as pork prices stay this low. The pork cutout is 18 percent below year-ago levels. The May contract is down 45 cents at $92.65 and June is 23 cents lower at $93.13.