Corn, soybeans trade higher at midday

Corn futures are trading slightly higher at midday. Strength is coming from the decline in crop condition ratings in Monday’s Crop Progress report, which showed the percent rated good fell 4 points and the index accounting for all 5 categories fell by 8 points. The condition of the crop is now the lowest it has been since the end of the 2008 season. The share of the crop silking increased to 65%, putting more of the crop at risk of adverse weather. However, weather forecasts for this week are both cooler and wetter than the oppressive heat we saw last week, which is weighing on prices.  September is 1 cent higher at $6.79 3/4 and December is 1 1/2 cents higher at $6.76.

Soybean futures are trading higher at midsession. Futures are up following the decline in the condition ratings.  USDA reported a two point drop in the share of the crop rated good and the overall index was down 3 points. The index for soybeans has dropped 9 points in the last two weeks. The market is also recovering some of the losses from Monday’s sell-off as well as spillover support from the weakening in the value of the dollar. Improving weather conditions in the Midwest are limiting gains. August is 12 1/4 cents higher at $13.77 3/4 and November is 12 cents higher at $13.84.

Wheat futures are trading lower at midday. Good crop condition ratings for the spring wheat crop are weighing on prices this morning.  USDA pegged the crop at 74% good-to-excellent compared to the 10-year average of 63%. Adding pressure are improving weather forecasts for the Midwest, which show a bit more positive outlook with rain and cooler temperatures.  The drought in the South is still a great concern and the region needs to see significant rain over the next couple of months to replenish the soil for the 2012 winter wheat crop that will be planted this fall. CBOT Sep is 8 1/2 cents lower at $6.80, KCBT Sep is 4 1/4 cents lower at $7.66 1/4 and MGE is 3 cents lower at $8.27 3/4.

Cattle futures are trading mixed at midday. Traders are waiting for some direction from the cash market to establish their lead. Futures are being pressured by Friday’s bearish Cattle on Feed report, which showed feedlot placements higher versus expectations for a decline. Feedlot numbers are up as well due to the drought driving more cattle to the market. August is 20 cents lower at $110.45 and October is 25 cents higher at $115.15.

Hog futures are trading lower at midsession. Ideas that the rally in hog prices could be reaching its peak are weighing on prices this morning. The difficulty in reaching a resolution to the debt crisis is also a concern among investors. However, reports that China has discovered an outbreak of foot and mouth disease would boost demand for pork, especially from the U.S. The weaker dollar is another positive factor for pork exports, which are already a key factor supporting cash and futures prices. August is $1.23 lower at $99.70 and October is $1.38 lower at $91.10.

http://www.dairyherd.com/dairy-news/Corn-soybeans-trade-higher-at-midday-126179788.html