Corn futures are trading higher at midday. Talk of increased demand from China on the recent price break and strength in crude oil prices are supporting futures. China is rumored to have been in the corn market last week and several countries are looking to buy more corn this week. Further gains in new-crop are being limited by generally favorable growing conditions. USDA will update crop condition ratings this afternoon and the trade is looking for good to excellent conditions to improved 1 point from 69% last week. September is 11 1/2 cents higher at $6.18 1/4 and December is 6 cents higher at $6.02 3/4.
Soybean futures are trading mixed at midsession. Spillover support from corn, strength in crude oil and the tight stocks projections due to the smaller acreage number are supportive factors. Despite generally favorable growing conditions, some traders see the need for adding weather premium back into the market. But new-crop has turned slightly lower on trade expectations that the Crop Progress report due out this afternoon will show crop ratings improved 1 point last week from the 66% good to excellent ratings the previous week. August is 1/2 of a cent higher at $13.13 1/4 and November is 1 cent lower at $13.11 1/2.
Wheat futures are strongly higher at midday. Increased export demand on the recent price break and short-covering are supporting the futures market. There is talk that Japan is in the market for U.S. wheat and there is talk of a lot of export sales being done on the global wheat market. Gains in Kansas City are being limited by seasonal harvest pressure. CBOT September is 17 cents higher at $6.29 1/4, KCBT September is 13 3/4 cents higher at $7.34 1/2 and MGE September is 20 3/4 cents higher at $8.25 1/4.
Cattle futures are trading mixed at midsession. The futures market is choppy as traders wait for direction from the cash market. Current ideas are for steady to firm trade as packers will be buying cattle for a full slaughter schedule next week. But gains in cash trade may be limited by unsold cattle from last week's showlists being carried over to this week. Cash trade was $112-$113 last week. August is 50 cents higher at $113.35 while October is 33 cents lower at $119.35.
Lean hog futures are mixed at midday. Weakness in the cash market on Friday and again this morning are weighing on most contracts. Cash bids are mostly steady to $1 lower this morning as packers are well bought on slaughter needs. Packer margins are poor and unless pork prices can move higher, cash prices will have a hard time moving higher. However, the discount of futures to cash is supporting some contracts. July is 45 cents lower at $95.05 and August is 25 cents higher at $93.40.