Corn futures are called 1 to 2 cents higher on light short-covering.
- Corn futures ended the overnight session mostly 2 cents higher on short-covering.
- Mildly positive outside markets also helped to support corn futures overnight.
- Also supportive for corn is a more constant flow of fresh demand news, as it signals corn has dropped to "value" levels that will rebuild export demand.
- But buying will be limited as seasonal harvest-related pressure builds over the near-term.
- Gulf corn basis is 2 cents firmer for immediate delivery to stand 56 cents over December futures. Basis for all other months is steady.
Soybean futures are called to open 1 to 5 cents higher
- Soybean futures ended the overnight session 1 to 5 cents higher, with nearbys leading gains amid short-covering.
- Soybean futures still have some work ahead in order to signal a near-term low has been posted, but recent basing action suggests traders recognize that demand has picked up at lower levels.
- USDA announced a 140,000 MT daily bean sale to unknown destinations for 2013-14 delivery this morning.
- But bulls will have a difficult time sharply extending gains near-term as harvest picks up across the Corn Belt.
- Gulf soybean basis is steady this morning to stand 91 cents over November futures for immediate delivery.
SRW and HRW wheat are called 2 to 5 cents higher, with HRS expected to post stronger gains.
- SRW wheat ended the overnight session 1 to 4 cents higher, with HRW up 5 to 6 cents. HRS futures ended mostly 8 to 9 cents higher.
- Wheat is seeing a boost from the pickup in export demand, which signals U.S. wheat is competitive on the global market.
- Futures are also being supported by concerns about freeze damage to the Argentine wheat crop.
- Recent price improvement in futures suggests the market is in the process of putting in a near-term low, but more technical chart improvement is needed to confirm a low is in place.
- HRS futures are seeing a boost from indications Canada's spring wheat crop has lower-than-normal protein levels.
- Gulf SRW wheat basis is 1 cent firmer for immediate delivery to stand 65 cents over December futures. Basis is steady for all other months.
Live cattle futures are called to open higher on followthrough from yesterday's gains.
- Live cattle futures are expected to build on recent gains as bulls clearly have momentum on their side.
- December live cattle futures posted a new-for-the-move high yesterday but finished mid-range.
- Traders expect packers to be forced to raise cash bids this week as nearby futures are trading at a premium to last week's $123 cash cattle trade.
- Strengthening boxed beef values are also supportive for futures this morning, although movement has slowed to signal beef values may be close to a near-term high.
- Feeder futures are expected to find support from tightening calf supplies and general weakness in the corn market.
Lean hog futures are called to open mixed on position squaring.
- Lean hog futures are expected to be mixed today on a combination of followthrough buying after yesterday's sharp gains and profit-taking as traders reevaluate positions.
- Bulls still have the clear technical advantage, but futures are approaching overbought territory, which raises the risk of profit-taking.
- October lean hog futures ended yesterday at nearly a $6 discount to the cash index, which signals there is still more room to the upside.
- Tighter-than-expected market-ready supplies continue to support futures, but gains in the cash market have moderated as packers turn their focus to improving margins.
- As a result, the cash hog market is called steady to weaker as many packers have trimmed kill hours to adjust to tighter supplies.