July corn futures are 9 cents higher, with other contracts around 2 to 4 cents higher.
- Corn futures are pulling support from the price reversal in the wheat market. That's encouraging short-covering in corn futures.
- July corn futures are leading the price advance as the cash market remains strong amid tight supplies.
- Strength in new-crop futures is limited to corrective buying as traders deem weather as favorable. They expect warm and sunny conditions early this week to boost crop prospects. But rains are forecast to return late in the week and next week's outlook calls for above-normal rains across much of the Corn Belt.
- Plus, the excessive moisture this spring has led to spotty emergence and varied stands across key production areas, including much of Iowa and southern Minnesota.
Soybean futures are 5 to 9 cents lower, with new-crop contracts leading losses.
- Weather is weighing on soybean futures this morning, as weekend rainfall was lighter than anticipated across the wettest areas of the Corn Belt. Plus, this week's forecast calls for mostly dry conditions through midweek. As a result, traders are expecting producers to make a final push to get beans planted and the weather should boost crop growth.
- But rains are expected to return late-week and next week's outlook calls for above-normal precip across most of the Corn Belt.
- Soybean futures are working off their overnight lows thanks to a firming tone in corn and wheat after earlier price pressure in those markets.
- Traders are awaiting NOPA crush data at 11 a.m. CT. The average trade guess puts the May crush pace at 117.6 million bu. and soyoil stocks at 2.522 billion pounds.
Wheat futures have turned solidly firmer, with July Kansas City futures leading the price reversal this morning.
- Wheat futures are getting a boost from corrective short-covering this morning amid ideas the downside has been overdone.
- But with harvest activity underway in the Southern Plains and Mid-South, the upside is limited to corrective buying. Rains through the Plains will temporarily halt harvest activity early this week.
- USDA on Friday said the GMO wheat discovery in Oregon appears to be an isolated incident and confirmed no traces of the unapproved wheat has been found in the commercial supply. USDA has also provided our trading partners with test kits to detect GMO wheat in shipments. But Japan and South Korea continue to ban shipments of U.S. western white wheat from the PNW.
Live and feeder cattle futures are narrowly mixed.
- Live cattle futures are light and choppy to open the week with mild pressure coming from the $2 drop in cash cattle prices in the Plains last week. But with futures trading below the cash market, selling interest is limited.
- Recent pressure in the boxed beef market is also keeping live cattle on the defensive.
- Until the cash and product markets signal short-term lows are in the works, traders will remain hesitant buyers in live cattle.
- Feeder cattle futures are getting limited direction from live cattle and the corn market, which is leading to two-sided trade in feeders.
Lean hog futures are narrowly mixed to open the week.
- Summer-month lean hog futures are mildly favoring the upside in early trade as they are trading at a discount to the cash market.
- But indications hog futures may have put in a technical top and questions about how much longer packers will continue to actively bid for cash hogs is limiting buying interest.
- Cash hog bids are steady at most Midwest locations. While a sharp surge in the pork cutout value Friday greatly improved packer margins, some plants have recently cut back on kill hours, lessening demand for cash hogs. Given tight market-ready supplies, packers are looking to improve margins.