Corn
Corn futures are trading higher at midday. USDA inspected 29.3 million bushels for export last week which was better than trade had estimated of 22 -26 MB. Crude oil and the dollar are supporting grains, especially corn. The dollar is about $2 higher at $48/barrel and the US Dollar Index is off 150 points, trading at $82. Trade may be starting to trade acres as Informa released their projections of 82.2 million acres, which is about 3.5 million off of 2008 bad about 10 million acres from 2007. Mar +6 ½ at 3.80.
Soybeans
Soybeans are trading marginal gains during midday trade. USDA has reported export inspections of 34.4 million bushels of soybeans last week, but was slightly below trade guesses of 35-40 MB. Beans are also seeing support from the outside markets. Regions of Argentina and Brazil still remain severely dry and will need moisture to boost growing crops. Informa Economics released there estimates of planted acreage Friday, suggesting farmers will plant 5.55 million more bean acres than they did in 2008, for a total of 81.45 million acres, the increase in acres may limit upside potential as supplies should increase. Jan +4 at 8.58 Jan Meal +.80 at 258.50 Jan BO +.28 at 31.20.
Wheat
Wheat futures are follow CBOT corn and soybeans higher, on a higher day for most commodities. USDA reported export inspections of 12.3 million bushels below trade estimates of 13-17 million bushels. The softer tone in the dollar is lending support to wheat exports and futures. Iraq has issued a tender to purchase 50,000 metric tonnes. Dormant winter wheat could be threatened by winter kill as temps across northern plains reach well below zero degrees Fahrenheit. Mar CHI +11 at 5.24 Mar KC +7 ¼ at 5.45 ½ Mar MLPS +7 at 5.97.
Cattle
Cattle futures are higher at midday on short covering and influences from outside markets. No deliveries were posted against the Dec contract which does not expire until 12/31/08. Cash trade last week was quoted $2-5 lower with dress trade at $133 in the North and $85 on live basis in the southern plains. Wholesale prices are sharply higher this morning and helping to underpin prices after sliding $10 in 10 days in both cuts. Morning Boxes: Choice +2.64 at $143.86 Select +1.39 at $133.78. Dec LC +22 at 83.55 Jan FC +22 at 87.40.
Hogs
Hogs are bouncing higher on short covering and exports during October. Exports of pork have been declining each month since May but Oct reversed that trend and is helping to underpin prices. Dec contract expired Friday and February is now the front month, pork bellies are pushed lower again this morning, losing more than $8/cwt in the last five trading sessions alone. IA/MN average cash hog price last Friday was $56.45/cwt off 13 cents. Feb LH +22 at 62.50 Feb PB -180 at 79.40.
Cotton
Cotton futures, like most commodities are trading higher as the US dollar declines. The dollar had been on soar higher gaining nearly 15 full points until recently. The US Dollar Index is currently trading at $82.26, $1.45 lower. Deliveries issued for the Dec contract (expired Friday) were 139 Monday, with a cumulative total to date of 7,119. Cotton futures are benefiting from higher energy and gold . Mar +78 at 44.21.