Corn futures are called to open steady to 1 cent higher amid quiet trade.
- Corn futures ended the overnight session marginally to1 cent higher to continue in its consolidation range.
- Rains are moving across the Midwest this morning and slowing harvest progress. With harvest behind the average pace this year, traders expect hedge-related weakness to continue weighing on the market.
- Pressure is being limited by fresh demand news, although lackluster price action in the face of stepped up purchases signals traders believe it will take an extended period of corn at "value" levels to strike a low.
- South Korean feedmakers purchased 368,000 MT of U.S. corn for March and April delivery, which follows the purchase of 140,000 MT of U.S. corn by another South Korea firm on Tuesday.
- Taiwan also bought 60,000 MT of U.S. corn overnight.
- Gulf corn basis is steady this morning.
Soybean futures are called 5 to 10 cents higher amid short-covering.
- Soybean futures ended the overnight session 6 to 9 cents higher on help from weakness in the U.S. dollar index and ideas recent losses were overdone.
- With harvest winding down, more focus is being placed on demand.
- Traders expect tomorrow's weekly export sales report, which will include totals from the previous two weeks, to reflect a pickup in activity.
- But Gulf soybean basis is steady this morning, which suggests supplies and demand are in balance.
- Without fresh news for the market to digest today, focus will be on position squaring ahead of month-end.
Wheat futures are called mixed amid position squaring.
- SRW wheat ended the overnight session narrowly mixed, with HRW and HRS marginally to mostly 1 cent higher.
- Slight weakness in the U.S. dollar index ahead of this afternoon's FOMC announcement is helping limit pressure on wheat futures this morning.
- But without fresh news for the market to digest, buying in the wheat pits will be limited.
- Slight support in HRW futures is coming from an unexpected downtick in the condition of the crop, while the SRW crop improved slightly last week.
- Traders are also keeping their eye on global crop conditions, as crop concerns raise expectations for demand prospects for the U.S. in the year ahead.
- India has cut its floor price for exports of government wheat by 13%, which will make grain from the country more competitive.
Live cattle futures are called to open mixed as trades wait on cash trade.
- Live cattle are expected to be mixed as traders wait on the cash market for direction.
- Choice beef values rose another $1.12 but packers moved only 117 loads of product on the day.
- Strength in the product market suggests packers will be forced to raise bids, but with margins in the red, they remain reluctant.
- Traders are also beginning to more actively even positions ahead of Thursday's Cattle on Feed Report, which will reflect the tightening supply situation.
- Slight strength in the corn market this morning will limit buying in feeder futures.
Lean hog futures are called steady to weaker on profit-taking.
- Lean hog futures are expected to see followthrough from yesterday's losses amid profit-taking.
- Futures were supported yesterday by unexpected strength in the cash market in some areas, but the cash market is expected to be steady to weaker today as packers say they are planning on a small Saturday kill.
- Pork cutout values slipped 36 cents yesterday and movement was moderate at 321.14 loads.
- December lean hog futures are trading in line with the cash index, which could limit price action.