Corn futures are called to open 1 to 2 cents lower on a lack of fresh news.
- Corn futures ended the overnight session mostly 2 cents lower on little fresh news for the market to digest.
- Harvest continues to weigh on the market, but hedge-related pressure should begin to ease soon. Traders expect this afternoon's progress report to show harvest around 60% complete as of Sunday.
- Price action remained rather lackluster overnight, which signals the market is in the process of putting in a harvest low, although fresh news is needed to secure a low.
- Gulf corn basis is 3 to 4 cents firmer for nearby delivery to suggest prices are attracting fresh demand.
- On the demand front, USDA announced an unknown destination has purchased 103,600 MT of corn for 2013-14.
Soybean futures are called 5 to 7 cents lower on profit-taking.
- Soybean futures ended the overnight session mostly 6 to 7 cents lower on profit-taking following last week's gains.
- China's Ministry of Commerce has lowered its soybean import forecast for the month by 640,000 MT to 5.21 MMT. While up from last month, the reduction added to weakness in futures overnight. That would still be up 10.9% from the 4.7 MMT of soybean imports in September.
- Meanwhile, favorable weather over the weekend allowed many producers to complete soybean harvest. Traders expect USDA to report harvest around 75% complete as of Sunday in this afternoon's update.
- Also this morning, USDA has announced a 115,000-MT soybean sale to China and 115,000-MT sale to unknown destinations, all for 2013-14 delivery.
- Gulf soybean basis is 2 cents firmer for immediate delivery, but basis is 1 cent weaker for November and December delivery.
Wheat futures are called to open 1 to 3 cents lower on spillover from neighboring pits.
- SRW wheat ended the overnight session 3 to 4 cents lower, with HRW down 1 to 2 cents. HRS ended overnight trade marginally to 1 cent lower.
- Wheat saw spillover from neighboring pits overnight, as well as from a firmer tone in the U.S. dollar index.
- Wheat needs a dose of fresh demand news to keep bulls interested.
- Gulf SRW basis is steady for October delivery but 9 cents firmer for November delivery to suggest demand news is on the horizon.
Live cattle futures are called to open mixed as traders wait on cash clues.
- Following last week's volatile price tone, live cattle futures are called to open mixed as traders gauge this week's cash market.
- Following record cash prices in the Plains last week, traders believe feedlots hold the upper hand in this week's negotiations given tightening supplies.
- But with packers' profit margins in the red, they will be hesitant to raise bids unless the boxed beef market continues to strengthen.
- Slight weakness in the corn market this morning is supportive for feeder futures.
Lean hog futures are called mixed amid position squaring.
- Lean hog futures are vulnerable to profit-taking following last week's strong gains, but bulls clearly hold the technical advantage.
- Upside potential should be limited by an expected softer tone from the cash market, as most plants are thought to be well supplied for this week's slaughter.
- December lean hog futures hold around a $1 discount to the cash index, which could help to boost nearby futures this morning.
- Pork cutout values softened 78 cents on Friday, although packers are still enjoying profitable margins.