Corn futures are trading mid-range at midday, posting losses of 2 to 5 cents.
- Early pressure on corn was tied to strength in the U.S. dollar index and improved chances of showers across the Corn Belt into the weekend.
- Futures have moved off session lows in reaction to this morning's stronger-than-expected weekly export corn sales of 178,400 metric tons (MT) for 2011-12 and 23,000 MT for 2012-13, as well as news Mexico purchased 982,980 MT of corn for 2012-13 and 533,400 MT for 2013-14. That's a sign there is some panic buying among end-users.
- December corn remains within the boundaries of yesterday's trading range, currently pivoting around the $8.00 level.
August soybeans are trading around 30 cents lower amid profit-taking, with the rest of the market down 2 to 12 cents.
- Forecasts for some beneficial rain for filling soybeans have triggered profit-taking.
- Outside markets are adding to the weaker tone, as the dollar is firmer and crude oil futures are under heavy pressure.
- Traders are also disappointed by this morning's weekly export sales report, as soybean sales came in below expectations at 194,000 MT for 2011-12 and 52,400 MT for 2012-13. But China and unknown destinations were noted buyers.
- Soymeal futures are sharply lower despite a new marketing-year high export sales figure of of 332,100 MT this morning.
Chicago wheat futures are mostly around 3 cents lower, with Kansas City and Minneapolis turning narrowly mixed.
- After a weaker start, futures have moved off session lows on some short-covering to trade midrange in most contracts.
- Traders remain concerned about the size of the global crop, which has helped wheat futures come well off earlier lows.
- Weekly export sales of 516,200 MT for 2011-12 and 4,500 MT for 2012-13 were within expectations.
Live cattle futures are mixed, with feeder futures lower in all but the August contract.
- Pressure on cattle futures is being limited by weakness in the corn market, but also limiting buying is spillover from lean hog contracts.
- Traders are still waiting on cash cattle trade to begin, with most still optimistic for $1 to $2 higher trade compared with last week's $114 trade.
- Strength in the US dollar index and triple-digit losses in the Dow Jones Industrial Average are also keeping buying in cattle futures to a minimum.
- Weekly beef exports of 15,800 MT were up from the previous week.
Lean hog futures have extended early losses to trade moderately to sharply lower.
- Negative outside markets are weighing on hog futures. The US dollar index has strengthened and the US stock market is under sharp pressure ahead of tomorrow's monthly employment report.
- Cash hog bids are steady to $1 lower, with packers working to improve margins on limited packer demand despite a strong performance in the pork product market Wednesday.
- Adding to pressure on nearby futures is stepped-up sow liquidation as that would add to supplies at a time when they start to build seasonally.