Corn futures are called 3 to 6 cents lower on profit-taking.
- Corn futures ended the overnight session 1 to 7 cents lower on profit-taking. Key this morning will how funds position themselves.
- Day 3 of the Midwest Crop Tour revealed a corn yield in Illinois of 170.48 bu. per acre, which compares to 121.60 bu. per acre last year and a three-year average of 148.04 bu. per acre.
- Scouts wrap up their sampling of the variable Iowa and Minnesota crops today.
- Rains moving into drought areas of the western Corn Belt today are adding to price weakness.
- Meanwhile, this morning's weekly export sales data shows sales of 58,200 MT for 2012-13 and sales of 434,400 MT for 2013-14 delivery -- falling short of expectations.
Soybean futures are expected to be mostly 4 to 10 cents lower on profit-taking.
- Soybean futures ended the overnight session 4 to 12 cents lower, although far deferreds were mostly firmer.
- Day 3 of the Midwest Crop Tour revealed Illinois soybean pod counts in a 3'x3' square of 1,115.97, which compares to 944.05 last year and a three-year average of 1,149.47.
- Traders will be watching for reports from scouts as they sample the remainder of Iowa and head into Minnesota.
- Rains moving into the western Corn Belt this morning are adding to some profit-taking, although showers are not expected to be widespread.
- Traders are disappointed by this morning's weekly export sales data, although it reveals still-strong demand. Soybean sales of 20,900 MT were reported for 2012-13 and 926,000 MT in sales were reported for 2013-14.
Wheat futures are called 2 to 4 cents lower on spillover from neighboring pits.
- All wheat flavors ended the overnight session mostly 2 to 4 cents lower.
- Wheat remains in a follower's role, although the market has been influenced by action in the dollar index this week.
- A stronger U.S. dollar index this morning is adding to the negative tone in the wheat pit.
- This morning's weekly export sales data is neutral for wheat, as sales of 494,000 MT for 2013-14 matched expectations.
- However, a 5-cent boost in Gulf basis for immediate delivery signals improved demand.
Live cattle futures are called to open mixed as traders wait for cash trade to begin.
- Live cattle futures are called mixed as cash trade has been delayed.
- Front-month August live cattle ended yesterday at around a $1 premium to the cash market, which signified positive cash expectations.
- Packers' initial bids came in at $121 yesterday in the Southern Plains, but asking prices are $4 to $5 above these levels.
- Given this week's tighter showlists, feedlots hold more bargaining power.
- Yesterday, Choice and Select values slid 14 and 38 cents, respectively, but movement did pick up to 195 loads.
- Weakness in the corn market is expected to be supportive for feeder futures.
Lean hog futures are called mixed on a combination of followthrough pressure and short-covering.
- Lean hog futures are due for a short-covering bounce following yesterday's losses, although attitudes have turned bearish.
- Futures should favor a weaker tone given yesterday's $2.50 drop in pork cutout values.
- But the sharp drop in pork cutout resulted in a pickup in movement, which signals prices could stabilize.
- The cash hog market is called steady to weaker due to building supplies, which gives packers no incentive to raise bids.
- Pressure on nearby contracts will likely be kept in check by the steep discount they maintain to the cash hog index.