Corn futures are expected to be mixed this morning in lackluster trade.
- Corn futures ended the overnight session steady to marginally lower after seeing another lackluster overnight trading session.
- Weakness in the U.S. dollar index helped to limit pressure, but reports of better-than-expected yields continue to weigh on futures.
- As a result, traders look for USDA to raise its corn yield estimate in Friday's crop report.
- Gulf corn basis is steady to 1 cent lower to reflect the arrival of new-crop supplies.
Soybean futures are called 4 to 6 cents higher on short-covering.
- Following yesterday's losses, short-covering lifted soybean futures overnight. Soybeans ended the overnight session around 5 cents higher.
- Back-and-forth price action is likely to continue this week as traders focus on evening positions ahead of Friday's key crop reports.
- Traders look for USDA to raise its soybean yield estimate due to reports of better-than-expected yields throughout harvest.
- But continued strong demand will help to keep carryover tight, which is also contributing to short-covering this morning.
- Reflecting strong demand is a penny gain in Gulf soybean basis for immediate delivery.
SRW and HRS are called firmer, with HRW expected to be mixed this morning.
- SRW wheat ended the overnight session marginally to 2 cents higher, with HRS posting marginal gains. HRW wheat ended the overnight session mixed.
- Weakness in the U.S. dollar index is supportive, especially with a wave of tenders posted overnight.
- Traders are waiting on results of an Egyptian wheat tender. Key will be if the U.S. gets any of the business, as it would signal prices here are competitive.
- Upside potential for HRW wheat is being limited by improved crop condition ratings.
Live cattle futures are expected to favor a firmer tone in mixed trade.
- Live cattle futures favored a firmer tone yesterday amid tightening supplies and closed mostly higher. A mixed start is expected today as traders wait on cash trade to develop.
- This week's showlist is larger across the Plains, but traders expect at least steady cash trade with last week given the overall tightness of supplies.
- Choice beef values slipped just 11 cents yesterday and Select rose 55 cents on lackluster movement of 122 loads.
- Nearby live cattle are trading in line with last week's cash trade.
- Also supportive this morning is news that Russia will lift its ban on U.S. beef over the ractopamine dispute at the beginning of next year.
- November feeder futures are trading in line with the cash index, which will limit buying.
Lean hog futures are called steady to weaker on cash market concerns.
- Lean hog futures are expected to see profit-taking to start the day.
- Pork cutout values slipped $1.08 yesterday, led by declines in hams. Movement of 315.17 is solid, but the decline in values comes as market-ready supplies are increasing.
- While packers' profit margins remain well in the black, cash bids are expected to be steady to weaker. Packers are having no difficulty securing needed supplies this week.
- December hogs are trading in line with the cash index, but the February contract holds a lofty premium to it.