Corn futures are called to open 5 to 10 cents higher on planting delays.
- Corn ended the overnight session 4 to 11 cents higher after heavy rains moved across the Corn Belt over the weekend. Key this morning is if traders build on overnight gains.
- While producers were able to make strong planting progress ahead of the storm, expectations are that remaining unplanted acres will be switched to another crop as there is more rain in the forecast for this week.
- Therefore, it could be another 10 days before producers are able to reenter fields in areas of the Central Corn Belt.
- December corn futures gapped higher in overnight trade and are testing $5.50.
- Gulf corn basis is 2 cents firmer for immediate delivery to stand $1.02 above July futures to reflect tight old-crop supplies. Basis for deferred delivery is steady to 2 cents weaker.
Soybean futures are called 10 to 15 cents higher on concerns about planting delays.
- Soybean futures ended the overnight session 9 to 16 cents higher.
- While talk is increasing that remaining unplanted corn acres will be switched -- many to soybeans -- ongoing planting delays are supporting futures this morning.
- Old-crop futures are finding support from tight supplies as well as indications China's feed demand is on the rise as the county begins to rebuild its poultry sector.
- Gulf soybean basis is steady to 5 cents weaker for nearby shipment, with basis mostly steady for deferred delivery.
- Also this morning, USDA announced an 120,000-MT soybean sale to China for 2013-14.
- November soybeans have risen to their highest level since early April, testing resistance at $12.60.
Wheat futures are called to open mixed, with buying limited to spillover from neighboring pits.
- Wheat futures ended the overnight session mixed in Chicago and Minneapolis, with Kansas City futures up around a penny.
- Wheat saw limited spillover from strength in the corn and soybean markets due to strength in the U.S. dollar index.
- According to China National Grain and Oils Information Center, the country purchased as much as 650,000 MT of U.S. wheat last week. Traders say this news is factored into the market.
- Above-normal temps and below-normal precip across the Central and Southern Plains has maintained stress on the HRW wheat crop.
- Spring wheat planting progress was made last week, but weekend rains have once again slowed progress.
Live cattle futures are called to open mixed on a combination of followthrough from Friday's closes and profit-taking on demand concerns.
- All eyes will be on the boxed beef market to start the week to gauge holiday beef demand.
- Less-than-favorable weather conditions throughout the Memorial Day weekend for much of the nation raises concerns about the start of the summer grilling season.
- But if boxed beef prices continue to rise on decent movement, it would be supportive as it suggests consumers have accepted the price rise.
- Strength in the corn market is expected to weigh on feeder cattle futures.
Lean hog futures are called to open mixed as traders wait on cash hog bids for direction.
- Lean hog futures ended last week on a positive note, which is expected to limit pressure to profit-taking.
- Traders will be keeping a close eye on the pork market to start the week as traders want to see information about demand given record-large stocks in frozen storage at this time.
- The cash hog market is called mostly steady, but some locations could raise bids due to flooding in areas of the Midwest and depending on packers' needs.
- June lean hog futures are trading at more than a dollar premium to the cash index, which will limit buying this morning.