Corn futures are called 1 to 3 cents lower amid spreading with soybeans.
- Corn futures were mostly around 3 cents lower overnight as traders continue to favor buying soybeans over corn.
- Adding to the weaker tone was news that China has rejected another cargo of U.S. corn due to detection of an unapproved GMO product. But the cargoes have reportedly been resold to another Asian destination.
- Otherwise, there's little fresh news for the market to digest and bears hold the technical advantage.
- Corn futures are nearing oversold territory according to the 9-day Relative Strength Index, which suggests a time or price correction is due.
- Negative outside markets are also weighing on corn futures, as the U.S. dollar index is stronger this morning.
Soybean futures are called 3 to 5 cents higher on followthrough buying.
- Soybean futures ended the overnight session1 to 4 cents higher in most contracts.
- Technically, soybean futures are nearing overbought territory according to the 9-day Relative Strength Index, which has led to price corrections in the past.
- There's little fresh news for the market to digest this morning, which has kept traders focused on spreading with corn.
All wheat flavors are called 2 to 4 cents higher as funds cover short positions.
- All wheat flavors ended the overnight session firmer as funds work to cover short positions.
- However, with little fresh news for the market to digest, upside potential is limited.
- Wheat is enjoying followthrough from Friday's higher close, but the market has a lot of work ahead to return momentum to market bulls.
- Strength in the U.S. dollar index this morning doesn't bode well for market bulls, as U.S. wheat is struggling to be competitive on the global market.
Live cattle futures are called steady to higher on followthrough buying.
- Live cattle futures are expected to benefit from followthrough buying after strong gains were posted in contracts last week.
- Cash cattle trade was limited last week, with packers raising bids late in the week to attract some movement.
- Even though showlists were not cleaned up last week, expectations are that this week's showlist is smaller.
- Choice beef values firmed 33 cents on Friday and Select rose 21 cents on slowed movement of just 86 loads.
- Weakness in the corn market is supportive for feeder futures this morning.
Lean hog futures are expected to favor a firmer tone in mixed trade.
- Hog futures posted little net change last week to signal the market is securing a near-term low. But building supplies will limit upside potential.
- More of the same is expected today, although futures are expected to favor a firmer tone on spillover from live cattle and the product market.
- Pork cutout values firmed $1.49 on Friday, but movement slowed to 266.46 loads.
- The cash hog market is expected to be mostly steady this morning, but an upside bias could develop if some packers return from the holidays short bought.