Corn futures are called 3 to 9 cents higher on winter-weather concerns in the western Corn Belt.
- Corn futures ended the overnight session 3 to 9 cents higher, which is expected to set the tone for daytime trade.
- A winter weather advisory (yes, it's May 2) across the upper and portions of the western Corn Belt this morning raise concerns about corn acres being shifted to soybeans or another crop.
- This morning's Weekly Export Sales Report showed net corn sales of 329,300 MT for 2012-13 and sales of 656,000 MT for 2013-14. Combined, the tally came within expectations.
- Gulf corn basis is steady to 1 cent higher this morning for spring and summer delivery.
Soybean futures are called to open 3 to 6 cents higher on short-covering.
- Soybean futures ended the overnight session 3 to 6 cents higher following yesterday's losses as traders opted to cover short positions.
- Futures were pressured yesterday by talk of South American soybean imports into the Southeast U.S.
- Adding to demand concerns is this morning's weekly sales report that showed net sales reductions of 109,800 MT for 2012-13. However, sales of 1,341,100 MT for 2013-14 reinforce ideas demand in the upcoming marketing year will be strong.
- Gulf soybean basis has firmed 5 cents for immediately delivery to stand 70 cents over May futures.
Wheat futures are called 3 to 6 cents higher on spillover from neighboring pits and crop concerns.
- Wheat futures ended the overnight session 1 to 6 cents higher in Chicago, 1 to 4 cents higher in Kansas City and 4 to 6 cents higher in Minneapolis.
- Wheat is expected to be supported this morning by spillover from neighboring pits as well as ideas yesterday's setback has provided a value buying opportunity.
- Day two of the Wheat Quality Council's HRW wheat tour showed yield potential through western and southern Kansas and far northern Oklahoma below year-ago -- as expected.
- Delayed planting in the Northern Plains is also supportive for futures. Winter weather across the region this morning has many traders raising their prevent-plant acreage expectations.
Live cattle futures are called to open steady to higher on improvement in the boxed beef market.
- Live cattle futures finished mid-range yesterday with slight gains and are expected to see light followthrough buying this morning.
- Additional support is expected from improvement in boxed beef values. Choice beef values surged $3.10 yesterday to $199.49 per cwt. and Select values were up $1.79 to $189.83. Movement was improved from the day prior to 173 loads.
- Cash cattle trade got underway at $128 in Kansas and Texas and at $130 in Nebraska yesterday afternoon -- largely steady with the previous week.
- Given strength in boxed beef prices, remaining feedlots are holding out for higher prices.
Lean hog futures are called to open mixed, with pressure limited by tightening supplies.
- Lean hog futures ended yesterday mixed, with nearbys higher and far-deferreds weaker. A continuation of the choppy tone is expected today.
- Pork cutout values firmed 67 cents yesterday on strong movement of 522.1 loads, which is supportive of followthrough buying for nearby futures this morning.
- But packers have seen profit margins deteriorate this week as cash hog bids have risen at a quicker pace than pork cutout values.
- The cash hog market is still called steady to higher based on tightening market-ready supplies, which will limit pressure on futures.