Corn futures are around 6 to 7 cents higher this morning.
- Short-covering is lifting the corn market today. Funds had built a record-large short position preceding Friday's key USDA reports.
- While USDA forecast a record-large 2013 corn crop of 13.989 billion bu., this was smaller than traders had anticipated. This lifted the corn market Friday and is supporting futures today.
- The improved technical posture of the market is also supportive.
- Also, daily and weekly export data signals prices are rebuilding demand. But the government holiday means the market will not receive an export inspections update until Tuesday. Traders are a bit skeptical about USDA's export forecast, which is the second smallest in 20 years.
- Gulf basis is steady to a penny lower today, signaling harvest is making supplies available.
- A weaker U.S. dollar index is helping to limit pressure.
Soybean futures are 4 to 9 cents lower this morning.
- Profit-taking is weighing on the bean market to start the week.
- The soybean market benefited from Friday's USDA reports that showed carryover supplies coming in at tighter than anticipated levels thanks to higher usage projections.
- However, USDA's production estimate came in a bit higher than anticipated at 3.258 billion bushels.
- Gulf basis fell 3 cents for immediate delivery, signaling increased farmer sales.
- The bean market is also being pressured by some spreading activity with the corn market today.
Wheat futures are 3 to 5 cents higher in all three flavors this morning.
- Strength in the corn market is providing spillover support to wheat to start the week.
- A weaker U.S. dollar index is also supportive.
- Gulf SRW wheat basis is steady for immediate delivery this morning to suggest supplies and demand are balanced.
- Traders are still digesting USDA's Crop Production and Supply & Demand Reports today. Friendly corn production data is getting more attention than a larger-than-expected 2013-14 wheat carryover projection figure.
Live cattle futures are slightly higher in most contracts to start the week.
- Cash cattle trade took place at $1 to $2 lower prices last week of mostly $131 on the Southern Plains. Traders are engaging in some light followthrough buys today as they await cash market clues.
- Packers are still dealing with negative cutting margins and the boxed beef market signaled it may have put in a top last week.
- But on the other hand, supplies are tight and are expected to remain so through year-end and into 2014.
- December futures are trading at nearly a $2 premium to the bulk of last week's cash action. This is limiting buying interest.
- Feeder cattle futures are mixed as strength in the corn market is encouraging some followthrough sales after Friday's disappointing close.
Lean hog futures are off to a narrowly mixed start.
- Buying and selling interest are limited in the lean hog market to start the week.
- While supplies are on the rise as per the seasonal norm, packers are enjoying wide profit margins, which is preventing a big slide in the cash hog market.
- Today cash hog bids are steady to lower as most packers have near-term needs secured.
- The December lean hog contract is at a $2 premium to the cash hog index, which adds light pressure.
- But countering that is improvement in the product market Friday. The pork cutout value rose 43 cents Friday and movement was solid at 352.66 loads.