Corn futures are called steady to 1 cent lower in lackluster trade.
- Corn futures ended the overnight session mostly a penny lower. Futures saw light followthrough buying early, but faded in late trade.
- Corn has benefited from spillover from the wheat pit this week, but the market is still hovering above important support levels.
- Softening basis levels across the country as harvest picks up is limiting traders' desire to do more than cover short positions.
- Gulf corn basis for immediate delivery is steady this morning to stand 60 cents over December futures. A recent pickup in export activity is also helping the market to respect support levels.
- Traders will also be focused on evening positions ahead of Monday's grain stocks data that will set carry-in for 2013-14.
Soybean futures are called to open steady to 5 cents higher on short-covering.
- Soybean futures ended the overnight session 1 to 5 cents higher and near weekly highs.
- Futures have consolidated around last week's lows this week as traders reevaluate positions.
- Limiting upside potential in the soybean pit this week is a pick up in harvest activity that has resulted in a weakening of basis across the country.
- But the strong start of exports for the marketing year reminds traders of the demand potential this year and the need to ration supplies as carryover is still projected to be tight.
- Gulf soybean basis is steady this morning to stand 95 cents over November futures. While Gulf basis has softened, it remains historically strong.
- Traders are also focused on evening positions ahead of Monday's grain stocks data that is expected to set 2012-13 carryover near 126 million bushels.
Wheat futures are called to open the day session mixed as traders even positions ahead of the weekend.
- SRW wheat ended the overnight session mostly 1 to 2 cents lower, with HRW futures narrowly mixed. HRS ended mostly 1 to 2 cents firmer.
- Wheat futures have been the upside leader this week to suggest the market is in the process of putting in a low.
- News that Ukraine could see a sharp drop in winter wheat acreage due to excessive wetness across the country is also a supportive factor this morning.
- Also supportive this morning is USDA's announcement of a 121,600-MT wheat sale to an unknown destination for 2013-14. Of the total, 55,000 MT is HRW, 38,800 MT is soft white and 27,800 MT is HRS.
- Wheat has been supported this week by indications U.S. prices are competitive on the global market.
- Wheat still has several layers of key resistance to clear before bulls clearly regain the reigns of the market.
Live cattle futures are called to open mixed as traders even positions ahead of the weekend.
- Live cattle futures are called mixed as traders move to the sidelines ahead of the weekend and wait on cash cattle trade to begin.
- Futures have been supported this week by tightening market-ready supplies and a pickup in beef movement. But traders are likely to take some profits out of the market as they wait on cash trade to develop.
- October live cattle ended yesterday at nearly a $4 premium to last week's cash trade, signaling traders' expectations for higher trade this afternoon.
- Choice beef values firmed just 1 cent yesterday and Select softened by 42 cents and 187 loads changed hands.
- Nearby feeder futures are especially susceptible to pre-weekend profit taking as the October contract holds around a $6 premium to the cash index.
Lean hog futures are called to open firmer amid ongoing strength in the pork market.
- Lean hog futures are expected to open with strength in reaction to ongoing strength in the pork market and ahead of this afternoon's quarterly hog report.
- Pork cutout values have firmed this week, with the carcass price now at $101.08 per cwt. While there have been days this week of strong pork movement, only 285.79 loads changed hands yesterday.
- The Quarterly Hogs & Pigs Report is expected to show All Hogs & Pigs at 98.6%, Kept for Breeding at 101.5% and Kept for Marketing at 98.3% of year-ago levels.
- Packers have seen profit margins improve this week, but packers have scaled back kill schedules to accommodate for tighter marketings. As a result, the cash market is expected to be mixed amid varied demand today.