Corn futures are called to open marginally lower on light followthrough selling.
- Corn futures didn't stray too far from unchanged overnight, but the market favored a weaker tone due to a lack of fresh news.
- With harvest progressing, traders expect hedge-related pressure to build this week.
- Traders are keeping a closer eye on basis levels given the lack of government data. A slight uptick in Gulf basis last week raised expectations foreign buyers had increased purchases to take advantage of softer prices.
- Next support for December corn is $4.30. The contract is hovering just above that level; violation of it could trigger sell stops.
Soybean futures are called 5 to 10 cents higher on rumors of Chinese buying.
- Soybean futures ended the overnight session posting gains of 3 to 11 cents.
- Rumors that China is buying U.S. soybeans lifted futures overnight. Individual sales will remain unreported until the government reopens.
- Meanwhile, according to official Chinese data, the country imported 4.7 MMT of soybeans in September, down 26.2% from August and 5.4% below year-ago.
- Through the first nine months of this calendar year, China has imported 45.75 MMT of soybeans, a 3.3% increase from year-ago.
- Stepped up harvest progress resulted in a weaker start in overnight trade and initially limited buying to short-covering.
Wheat futures are called 3 to 5 cents lower amid profit-taking.
- SRW and HRW wheat ended the overnight session mostly 2 to 4 cents lower, with HRS mixed with a weaker bias.
- Weakness in the U.S. dollar index is helping to limit pressure to profit-taking.
- But there are concerns the recent rally in wheat has priced the U.S. out of the global market for now.
- Meanwhile, China says it will raise the price it pays farmers for wheat in 2014 by 5% in hopes of raising production.
Live cattle futures are called to open steady to stronger amid tightening supplies.
- Nearby live cattle futures posted gains last week, which is expected to attract followthrough buying this morning.
- Futures are also expected to see a boost from $2 higher cash cattle trade in Texas and Kansas on Friday at $128.
- Tightening market-ready supplies have traders expecting at least steady cash trade later this week. But given negative packer margins, they will be hesitant to raise bids.
- October live cattle are trading at a slight premium to the cash market.
- Feeder futures are expected to be supported by weakness in the corn market.
Lean hog futures are called mixed, with buying limited to short-covering.
- Bears have a slight advantage to start the week after futures posted losses last week.
- Traders are also nervous about how the settlement process for October hogs will go this week, which could result in stepped up liquidation pressure.
- The cash hog market is called steady to lower due to a slight uptick in market-ready supplies.
- The lack of government information is also a drag on the market, as traders are relying on private information on slaughter and pork trade.