Corn futures are called marginally to 1 cent lower in lackluster trade.
- Corn futures ended the overnight session mostly around a penny lower in light trading volume.
- Focus in the commodity markets today will be on end-of-the-year position squaring.
- Given recent price pressure, it's apparent funds are comfortable with their net short position.
- Recent rains in Argentina have eased drought concerns, but traders recognize that irreversible damage to the crop has been done. There is more rain in the forecast for the week.
- UkrAgroConsult raised its 2013 corn production forecast for Ukraine by 500,000 MT to 26 MMT.
- Gulf corn basis is steady to 1 cent lower this morning, with January delivery standing 74 cents over March futures.
Soybean futures are called 2 to 6 cents lower on a continuation of overnight trade.
- Soybean futures ended the overnight session 2 to 6 cents lower, with nearbys leading losses in light volume trade.
- Funds were net sellers yesterday and continue to lighten their long exposure to the market ahead of year-end.
- Recent rains in Argentina and southern Brazil support thoughts of a record South American bean crop in 2014.
- Soybean futures are working on monthly losses and are hovering above support at the bottom of this month's consolidation range.
- Gulf soybean basis is steady to 1 cent firmer for near-term delivery. January delivery is $1.00 over January futures.
All wheat flavors are called marginally to 1 cent lower on spillover from neighboring pits.
- All wheat flavors ended the overnight session mostly around a penny lower on spillover from corn and soybeans, as well as slight strength in the U.S. dollar index.
- Traders are focused on evening positions as they close their books for the year. But funds apparently are very comfortable with their large net short position, as further technical chart deterioration has been seen.
- March SRW wheat futures posted a fresh contract low and ended the overnight session just below the key $6.00 level.
- Wheat needs a constant dose of export news to help the market stabilize.
- Gulf SRW wheat basis is steady to 5 cents lower. Gulf basis for January delivery stands $1.00 over March futures.
Live cattle futures are called higher on strength in the beef market.
- Live cattle futures are expected to enjoy followthrough from yesterday's gains as well as strength from the beef market.
- Choice beef values surged $2.72 yesterday and Select rose $4.16. This narrows the premium Choice holds to Select to just $4.25. Only 115 loads of beef changed hands yesterday, however.
- Strength in the beef market, tight showlists and snow in the near-term forecast raise expectations for $1 higher cash cattle trade compared with last week record-setting prices in some regions.
- Slight weakness in the corn market should provide a boost for feeder futures this morning.
Lean hog futures are called mixed amid bear spreading.
- Nearby lean hog futures were unable to sustain yesterday's early gains, which opens the door for followthrough pressure this morning.
- Nearby futures posted bearish reversals yesterday, which signals bears clearly hold the advantage and are comfortable with their positions heading into 2014.
- February lean hogs remain at a steep premium to the cash hog index, which opens the door for sharp near-term downside risk.
- The cash hog market is called mostly steady, but some firmer tones are possible due to winter weather across the Midwest.
- The pork cutout value gained 25 cents yesterday and movement improved to 381.51 loads.