Corn and wheat futures trade lower on Tuesday

Corn futures are trading solidly lower at midsession. Profit-taking is weighing on the market ahead of the USDA annual outlook forum later this week. USDA is expected to increase its acreage estimate for corn this year, which would raise production to record levels. The market has failed to find support from outside markets, but weakness in the dollar index and strength in the stock market and crude oil are limiting further losses. March is 11 1/2 cents lower at $6.30 1/4 and December is 5 1/2 cents lower at $5.62 3/4.   

Soybean futures are mixed at midday. Spillover weakness in corn and wheat are weighing on deferred soybean futures. Traders are being cautious ahead of USDA’s annual outlook conference later this week. Crop friendly rain was reported in Argentina over the weekend. However, front end futures are slightly higher on the declining production estimates for Brazil and Argentina soybean crops due to stressful weather this growing season. Outside markets are also supportive as the dollar index is lower while crude oil futures are higher. March is 1/2 of a cent higher at $12.68 while November is 3 1/2 cents lower at $12.58 1/2. 

Wheat futures are trading lower at midsession. The market is being pressured by profit-taking from gains last week ahead of the USDA’s annual outlook forum later this week. Ideas of a larger corn crop are bearish for wheat and especially SRW as it is a competing feedgrain. Weather forecasts call for some snowfall in the northern Plains, which would provide welcomed moisture ahead of spring planting. CBOT March is 15 3/4 cents lower at $6.28 1/4, KCBT March is 15 cents lower at $6.74 1/2 and MGE March is 7 1/2 cents lower at $8.14 3/4.   

Cattle futures are trading slightly lower at midsession. The market is pressured lightly by profit-taking and technical selling as futures are at or near contract highs. However, losses are being limited by strength in the cash market last week and optimism for strength to continue this week. Smaller showlists and recent strength in beef prices are fundamentally supportive factors. April is 5 cents lower at $130.85 and June is 5 cents lower at $128.43.

Lean hog futures are mostly lower at midday. Pork cutout prices were down 41 cents on Monday and the market is being pressured by concern that pork demand is sluggish at current prices. In addition there is talk that supplies of pork in cold storage are growing. Losses are being limited by steady to firm cash bids. Packer margins are poor, but some plants need hogs to fill slaughter schedules following plant closures on Monday for Presidents Day. April is 43 cents lower at $89.95 and June is 38 cents lower at $99.00.