Corn futures are called 1 to 3 cents lower as traders wait on USDA data.
- Corn futures didn't stray too far from unchanged in overnight trade, but futures were weaker as traders prepare for USDA's report data.
- Traders look for USDA to lower the size of the corn crop to 13.646 billion bu., with a yield of 153.9 bu. per acre, but aren't willing to add long positions ahead of the report in case of a surprise.
- Additionally, traders expect USDA to trim 2013-14 carryover to around 1.7 billion bu., down from 1.837 billion bu. last month.
- Weekly corn export sales of 332,600 MT for 2013-14 fell short of expectations, but a total of 876,100 MT were carried over from the 2012-13 season.
Soybean futures are called to open 3 to 5 cents lower on light profit-taking ahead of USDA's reports.
- Soybean futures ended the overnight session mostly 3 to 5 cents lower as traders work to even positions ahead of USDA's reports later this morning.
- Pressure in overnight trade was limited as traders expect USDA to trim the size of the soybean crop from last month to 3.149 billion bu., with a yield of 41.3 bu. per acre.
- Additionally, traders look for USDA to trim 2013-14 carryover to around 161 million bu., down from 220 million bu. last month.
- But traders are hesitant to extend long positions ahead of the report to aggressively due to the risk of a surprise either way.
- China sold 346,760 MT of state-owned soybeans out of 501,098 MT put up for auction this week at an average price of 4,082 yuan ($670) per ton, which was a slowdown from recent weeks.
- Soybean export sales of 478,100 MT for 2013-14 fell short of expectations. A total of 928,500 MT were carried over from the previous marketing year.
Wheat futures are called mixed in lackluster trade.
- Wheat futures ended the overnight session mixed, but favored a firmer tone.
- Traders' focus is on even positions ahead of the 11:00 a.m. CT USDA reports. Traders look for USDA to raise carryover by around 5 million bu. from last month to 556 million bushels.
- This morning's Weekly Export Sales Report is viewed as neutral for the market. Wheat export sales of 543,900 MT for 2013-14 and 8,000 MT for 2014-15 came within expectations.
- Strategie Grains has raised its peg of the EU's 2013-14 soft wheat harvest by 1.3 MMT to 135.5 MMT due to higher acreage.
- Traders are also beginning to pay more attention to the weather in the Plains now that winter wheat planting is ramping up. Severe drought is well entrenched across western Kansas, although recent rains have provided some relief.
Live cattle futures are called to open mixed as traders wait on cash cattle trade to begin.
- Live cattle are expected to be mixed as traders wait on cash trade to begin.
- Improvement in boxed beef movement should help to limit pressure, as 245 loads changed hands yesterday. Choice beef values improved 20 cents and Select declined 26 cents.
- Packers have shown little interest in bidding for cattle yet this week and feedlots have less bargaining power due to showlists being up from last week.
- Most expect steady cash trade with $123 seen last week.
- A slightly weaker tone in the corn market overnight is supportive for feeder futures this morning.
Lean hog futures are called to open higher amid ongoing strength in the pork market.
- Lean hog futures saw some light profit-taking yesterday and bulls are expected to take the reins this morning given ongoing strength in the pork market.
- Pork cutout values gained $1.30 yesterday and movement was strong at 446.3 loads.
- With packer margins in the black, they are expected to bid up for cash supplies again today.
- From a fundamental standpoint there is still room to the upside for nearby lean hog futures as the October contract ended yesterday at around a $2 discount to the cash index.