Corn futures are 6 to 7 cents lower on followthrough pressure.
- Corn is under pressure this morning as traders square positions ahead of the weekend and ahead of noon expiration for the September contract.
- Traders continue to look at weakening basis at interior markets as the cash trade prepares for the start of harvest. Some locations from Kansas City and Omaha to Cincinnati cut their basis by 10 cents to 25 cents this morning with basis levels weakening more in the eastern Corn Belt where yields appear strong.
- Gulf corn basis is steady for September and October delivery, a penny higher for November delivery and steady for December and January delivery.
- The market is seeing some light technical buying as December futures probed support near $4.57 yesterday and then bounced. But traders see only limited upside potential with a record corn harvest on the horizon.
- Traders believe it will take an extended period of time to rebuild export demand.
- Traders also view recent weather forecasts as positive for crop development.
Soybean futures are 5 to 14 cents lower amid profit-taking in all but the September contract that is sharply higher.
- Traders are taking some profits after yesterday's surge triggered by USDA Supply & Demand Report which showed lower 2013-14 supplies than the trade expected.
- Recent weather forecasts calling for cooler temperatures and increased chances of rain for the upper Midwest this weekend are seen as favorable for crop development.
- Traders are also evening positions ahead of the expiration of the September futures contract at noon today.
- Traders are viewing the widening of basis levels on interior markets due to the pending start of harvest as negative. While some areas are holding basis levels unchanged others are widening basis by 10 cents to 20 cents.
- Gulf basis is a penny higher for last-half September delivery and unchanged for later delivery periods through December.
All flavors of wheat futures are down today with SRW down 7 to 12 cents, HRW down mostly 9 to 10 cents and HRS down 2 to 7 cents.
- Wheat futures are lower in reaction to the selloff in corn and rain over parts of the Central Plains.
- Recent rains and weather forecasts calling for more precipitation over the parched HRW wheat country are bringing selling pressure as the rains are seen as very timely with fall seeding just ahead.
- Additional pressure is coming from USDA's increase of global wheat supply projections listed in yesterday's reports.
- The September contracts expires at noon today.
- Gulf SRW basis is unchanged in early morning trading with the exception of January delivery which is 4 cents weaker. Basis was listed as steady at interior points this morning.
Live cattle and feeder cattle futures are slightly higher.
- Futures are slightly higher on light short-covering as cash cattle prices appear to be coming in at steady rather than lower.
- Cash cattle began trading at $123 in the Southern Plains, even with a week ago, after packers failed to gain traction with their $121 bids.
- Packer margins have narrowed but wholesale beef movement has picked up and has traders thinking the seasonal upswing in wholesale and cash prices may be about to begin.
- Traders are looking for index funds to complete their roll from the October to the December today.
- Feeder cattle are getting a lift from the weakness in corn futures.
Lean hog futures are slightly to moderately higher.
- Live hog futures are slightly higher as traders test resistance at contract highs to signal attitudes remain bullish.
- Traders continue to look for the cash hog and wholesale pork market to weaken seasonally and believe they may have gotten some early indications of the start of the trend in yesterday's poor dressed pork report.
- Pork cutout values declined $1.31 Thursday and movement slowed to 290.4 loads.
- However, packers are bidding steady to $1 higher to fill slaughter needs into Monday.