Corn futures are trading lower at midsession. The market is being pressured by positioning ahead of the USDA reports due out on Thursday morning. The smaller corn crop in South America is expected to encourage USDA to raise its export forecast and lower the U.S. ending stock estimate by about 50 million bushels. Losses are being limited by weakness in the dollar index. March is trading 3 1/4 cents lower at $6.41 and May is 3 1/2 cents lower at $6.47 3/4.
Soybean futures are lower at midday. Positioning ahead of the USDA reports due out on Thursday morning and some improved weather in South America are weighing lightly on the market. Losses are being limited by concern that the already lost yield potential to the South American soybean crop will push additional export business to the U.S. March is 1 cent lower at $12.32 and May is 1 cent lower at $12.41.
Wheat futures are lower at midsession. The market is pulling back from the short-covering gains on Monday. Traders are gearing up for the USDA reports due out on Thursday morning. Trade expectations are for a small reduction in ending stock estimates for the U.S. and globally. Losses are being limited by expected crop losses in eastern Europe and the Black Sea regions due to cold temperatures and winterkill. CBOT March is 9 1/4 cents lower at $6.59 1/4, KCBT March is 6 cents lower at $7.13 and MGE March is 4 cents lower at $8.37.
Cattle futures are trading mixed at midday. Front end futures are trading higher on strong in boxed beef prices and generally smaller showlists that has led to optimism for the cash market this week. Packers have slowed slaughter due to poor margins and the smaller supplies are helping to support beef prices. But deferreds are trading mostly lower on continued concern about beef demand. February is 75 cents higher at $124.50 and April is 40 cents higher at $127.90.
Lean hog futures are mostly lower at midsession. Cash markets are mostly steady to slightly lower today. Pork cutouts were down 35 cents on Monday. Packers are trying to improve margins and slow slaughter. But losses are being limited by ideas that demand will soon improve seasonally. In addition, China is expected to import more U.S. pork later in the year. February is 43 cents lower at $86.70 while April is 25 cents higher at $88.80.