(CattleNetwork) – Corn futures are trading 1 to 2 cents higher at midday. Corn futures are up despite a bearish market outlook. Futures prices are experiencing some volatility as pressure from outside markets and weakness in the other grain markets are weighing on prices limiting gains. News that Japan and South Korea are looking to replace wheat with corn in animal feed, increasing demand for U.S. corn will strengthen the market.
Soybean futures are trading 7 to 19 cents lower at midday. Soybeans prices are plummeting as the economic situation overseas continues to worsen. The downgrade of the Spanish banking system, political unrest in Greece and the news that China is likely not to stimulate its economy are keeping prices depressed. The market is also seeing spillover pressure from weakness in the soy complex and crude oil market.
Wheat futures are trading lower at midday. Futures prices are 6 to 7 cents lower at CBOT, 2 to 3 cents lower at KCBT, and 1 to 2 cents higher at MGE. The market is heavily pressured by outside macro economic factors. The downgrade of the Spanish banking system and economic slowdown in China are dragging prices down. Fundamentally, much needed rains in Russia and Australia are adding to the decline of market prices.
Cattle futures are trading $1 lower at midday. Cattle futures turned lower as weakness in the equity and commodity markets weighed prices down. Demand and boxed beef prices were up yesterday with a firm showing of more than $1 for both choice and select; however, growing concern over the euro zone and the Chinese economy are overwhelming prices.
Hog futures are trading 15 to 50 cents lower at midday. Hog futures are trading lower despite a rebound in the pork cutout value on Tuesday. Prices are tumbling as investors looked to quickly sell off risky equity and commodity assets due to the ongoing European debt crisis. Trade in the cash market is reported as steady to lower.