Corn futures are called 1 to 3 cents lower this morning.
- Corn ended the overnight session 1 to 3 cents lower on a light profit-taking.
- Selling interest in corn, especially new-crop contracts should be limited as very heavy rains fell on the western Corn Belt overnight and more are forecast across the Corn Belt through Friday. This will push late planting efforts back even further as soils are saturated.
- Given the planting delays and very soggy soils across the Corn Belt, traders are trying to determine how many acres will get planted to corn and how much will be switched to soybeans or claimed as prevent-plant.
- Gulf corn basis is steady to firmer this morning.
Soybean futures called 4 to 9 cents lower amid bull spread unwinding.
- Soybean futures finished the overnight session 5 to 9 cents lower in old-crop contracts and around 4 cents lower in new-crop contracts.
- Given the corn planting delays, talk of some acres being switched to soybeans is starting to increase. But traders are uncertain how many acres may get changed over.
- USDA announced China bought 120,000 MT of soybeans for 2013-14 this morning. That should help limit selling pressure on new-crop soybeans.
- Gulf soybean basis is a nickel higher for immediate delivery and steady to 4 cents higher for June through September delivery.
Wheat futures are called to open roughly 5 to 8 cents lower in Chicago and Kansas City, with lesser losses expected in Minneapolis.
- Wheat futures ended 3 to 8 cents lower in Chicago, mostly around a nickel lower in Kansas City and 1 to 2 cents lower in Minneapolis overnight.
- Fallout from the discovery of unapproved GMO wheat in Oregon will weigh on wheat futures. Japan canceled its offer to buy U.S. western white wheat in its weekly tender and says it will halt purchases of such wheat until the U.S. provides a testing kit for shipments. The European Union will also test U.S. wheat shipments for GMO content, while other key trading partners are going to closely monitor the situation.
- Selling interest in Minneapolis wheat futures will be limited by heavy rains pushing through the Northern Plains, which are further delaying spring wheat planting.
Live cattle futures are called to open mixed to mostly firmer.
- Live cattle futures are expected to see followthrough buying after a strong close Wednesday. But buying interest is likely to be limited as traders wait on cash cattle trade to develop in the Plains.
- The discount summer-month live cattle futures hold to last week's cash trade should provide light support, though traders are comfortable with futures trading below the cash market despite tightening market-ready supplies.
- Demand concerns continue to hang over the market, though the boxed beef market has performed well so far this week. Boxed beef prices were firmer yesterday and packers moved 231 loads of product on the day.
- Feeder cattle futures are seen opening steady to firmer on mild support from live cattle and modest overnight losses in corn.
Lean hog futures are called to open steady to firmer.
- Lean hog futures are seen opening with firmer amid better attitudes, a strengthening technical picture and improved demand prospects. But some profit-taking is possible as futures didn't close very well on Wednesday.
- Cash hog bids are called steady at most Midwest locations today. While margins are tight, packers are competing for a tightening supply of market-ready hogs.
- The pork product market posted a strong performance yesterday as the cutout value was 76 cents higher and packers moved a strong 547.8 loads of product.
- Additionally, traders feel the deal by China's Shuanghui International to buy Smithfield Foods will boost U.S. pork exports.