Corn futures are trading 27 to 38 cents lower at midsession. Spillover pressure from the soybean market are pulling corn futures lower at midday. Despite further declines to the corn crop condition rating (good/excellent), corn futures have not been able to rebound. Lower outside markets and a higher dollar index are weighing on the market as well. Although weather remains bullish for the market, it seems macro-economic conditions (lower outside markets, EU debt crisis, etc) are driving commodity markets.
Soybean futures are trading 55 to 59 cents lower at midsession. The market continues to see substantial price declines as non-commercial long liquidation continues. Weakness in the soy complex is creating a ripple effect through the other grain markets, sparking rounds of sell offs which are pushing prices lower. Overall, the market remains bullish as weather forecasts across the drought stricken Corn Belt remain unchanged and supply/demand fundamentals remain intact.
Wheat futures are trading 40 to 42 cents lower at mid-session. The higher dollar index and spillover pressure from the corn and bean markets are keeping wheat prices capped at midsession. The dynamics of the market are becoming more and more bullish for the market as traders fear global wheat stocks to fall significantly short of global expectations. Currently, Kazakhstan wheat production is estimated to be 14.2 mmt lower than the previous year while Australia is expected to see a 33% decline in exportable wheat marketings.
