Corn futures are expected to favor a weaker tone in mixed trade.
- Corn futures ended the overnight session marginally lower in lackluster trade.
- Slight strength in the dollar index is weighing on corn this morning, although pressure should be limited by improving demand.
- USDA reports corn harvest is 73% complete as of Sunday, which suggests the bulk of hedge-related pressure is now behind the market.
- But reports of better-than-expected yields continue to limit buying in futures to short-covering.
- Traders' focus is also turning to evening positions ahead of Friday's November USDA reports, which are expected to feature an increase in the average national corn yield.
- Corn should also be supported by news that South Korea has purchased 140,000 MT of corn and an unknown buyer has purchased 126,000 MT of corn -- all for 2013-14.
Soybean futures are called 4 to 6 cents higher on short-covering.
- Soybean futures ended the overnight session 2 to 6 cents higher on short-covering.
- As of Sunday, USDA reports soybean harvest was 86% complete, which is one percentage point ahead of the five-year average.
- Rains in the forecast will slow remaining harvest efforts this week, but traders view harvest pressure as winding down.
- Focus in the market is also on evening positions ahead of Friday's USDA crop reports. Traders look for USDA to raise its national average soybean yield, but carryover is expected to remain tight given strong demand.
Wheat futures are called mixed amid position squaring.
- All wheat flavors saw choppy trade overnight and ended narrowly mixed.
- Upside potential is being limited by improvement in the winter wheat crop. Our weighted Crop Condition Index shows the HRW crop improved 4 points to 364 (0- to 500-point scale) and the SRW crop improved 1 point to 378.
- According to official Russian trade data, the country has exported 11.177 MMT of grain the first four months of 2013-14, up 8.5% from year-ago.
- Meanwhile, Gulf SRW wheat basis is steady to 3 cents firmer for November and December delivery, respectively.
Live cattle futures are called to open mixed as traders gauge cash expectations.
- Live cattle futures are expected to favor a firmer tone in mixed trade as traders wait on clearer direction from the cash market.
- While this week's showlist is up from last week, ongoing strength in the beef market raises expectations for at least steady cash bids with last week's $132 trade.
- Choice beef values were 96 cents higher yesterday and Select rose 29 cents. But movement was lackluster at just 122 loads.
- A slowdown in beef movement raises concerns that beef prices have risen too far.
- Slight weakness in the corn market this morning is supportive for feeder futures.
Lean hog futures are called mixed amid position evening.
- Lean hog futures are expected to start the day choppy as traders reevaluate positions.
- Bears hold the near-term technical advantage, but downside risk should be limited by strength in the pork market.
- Pork cutout values firmed 85 cents to start the week on decent movement of 318.73 loads.
- But packers say they are having no difficulty securing supplies and are expected to bid steady for cash hogs today.
- Packers want to keep kill lines running as full as possible given profitable margins.