AG: Corn futures tumble on Euro zone debt, crude oil weakness
Corn futures are trading lower at midday. Corn prices turned lower on weakness in the crude oil markets and the ongoing euro zone debt crisis. New crop contracts are trending lower as parts of the U.S. Midwest saw much needed rains over the weekend. Today’s crop progress report is expected to show a decline in new crop corn conditions, which should lend support to prices.
Soybean futures are trading mixed at midday. Soybean futures turned lower amid a declining dollar and bullish market fundamentals. Prices tumbled giving back much of this morning price rally. Prices are being pressured by weakness in the soymeal and crude oil markets. Investor concern about the EU debt crisis and upcoming Greek election has returned, which is weighing on commodity prices. However, tight supplies and strong demand for soybeans should cap market losses.
Wheat futures are trading 3 to 14 cents higher at midday. Wheat futures are remaining firm as corn and soybean prices decline. Wheat futures are trading higher on short covering and the declining U.S. dollar index. Prices are seeing support as weekend rains over portions of the U.S. Midwest and Plains will slow winter wheat harvest. The winter wheat harvest was progressing very quickly with 20% reported as harvested in last week’s crop progress report.
Cattle futures are trading mixed at midday. Prices are supported by strength in the cash markets. Weakness in the dollar index and better outside market conditions are favorable for prices. However, the market is met with resistance as concerns over the euro zone debt crisis resurfaces, mainly due to the upcoming Greek elections. Market prices are also seeing downward pressure from declining beef prices.
Lean hog futures are trading higher at midday. Hog futures trading higher as pork prices rebounded from last week’s losses. The pork cutout value was reported up almost $1 on Friday lead by higher pork belly prices. Firm demand and tighter supplies are strengthening market prices. Steady to higher prices in the cash market should lend support to prices also.
