Corn futures remains double-digit higher in all but the September contract, which is seeing lighter gains.
- Thus far, spillover from surging soybean prices this morning is outweighing sharp gains in the U.S. dollar index.
- Plus, traders expect more crop deterioration in USDA's evaluation Monday and ahead as conditions have been dry and are expected to remain so with building heat.
- This is also keeping attention away from slowed Japanese corn use in feed and softer basis levels at interior locations on increased farmer selling.
Soybean futures are posting gains in the teens to 30s.
- With soybeans rapidly approaching their key pod-filling stage, traders are becoming increasingly concerned about the forecast. The expected high temps with limited precip would not bode well for pod filling.
- Supplies were expected to be tight without a weather scare, so the market is working to achieve the rationing needed to make supplies last.
- August soybean futures posted an all-time high according to the weekly continuation chart of $17.77 3/4 earlier this morning.
Wheat futures continue to favor the upside in choppy trade.
- Wheat futures are enjoying spillover support from corn and beans, but sharp gains in the U.S. dollar index has encouraged some profit-taking.
- But bulls maintain the upper hand thanks to crop concerns overseas, including Russia, Australia and China. This has improved U.S. wheat export prospects.
- However, global supplies are still not worrisome, meaning wheat will likely remain as a follower to corn, and that market's weather rally will not last forever.
- Also encouraging some profit-taking is expectations for USDA's Monday Crop Condition Report to show the spring wheat crop is in generally in good shape.
Live cattle futures are posting slight to moderate losses this morning, while feeder cattle futures are sharply lower.
- Traders are taking some risk off the table ahead of this afternoon's Cattle Inventory and Cattle on Feed Reports, which are expected to reflect tightening supplies.
- Encouraging profit-taking is a $1.58 decline in Choice cuts and a 63-cent fall in Select values yesterday along with a slowdown in movement to 194 loads.
- Plus, August feeder cattle futures are at nearly a $6 premium to this week's cash trade.
- Strong gains in the corn market are pressuring feeder cattle futures.
Lean hog futures are enjoying slight to moderate gains.
- August lean hogs are benefiting from the discount they hold to the cash hog index while deferred months are seeing some short-covering ahead of the weekend and the Cold Storage Report.
- Expectations are for the report to show record-large frozen pork stocks for June, but traders do not want to be got caught short in case demand was stronger than anticipated.
- Pork cutout values rose another 79 cents yesterday with decent movement of 71.75 loads.
- Cash hog bids are mostly steady as some plants are in need of more supplies for next week. Packers are still cutting in the red.