Corn futures are trading mostly 3 to 5 cents higher.
- Corn futures are being supported by demand. With many traders taking last Friday off for an extended vacation, the market is still factoring in stronger-than-expected weekly export sales. There's also hope near-term demand will continue to funnel in given congestion at Brazilian ports.
- Additional support is coming on spillover from the soybean market.
- Gulf corn basis is steady this morning.
Soybean futures are mostly 7 to 10 cents higher, with nearby contracts leading gains.
- Soy complex futures are getting a lift from demand. USDA announced a 20,000 MT soyoil sale to unknown destinations for 2012-13, which follows a flurry of soyoil sales announced the last two weeks. Since Nov. 14, USDA has announced daily soyoil sales of 188,000 MT to unknown destinations and China.
- Concerns with South America weather, especially too-wet conditions in Argentina, are also supportive. Rains fell on some of the dry areas of Brazil over the weekend and more precip is in the forecast for central Brazil this week, but Argentina is also forecast to get more rain, which will continue to hamper planting efforts and crop development.
- Gulf soybean basis is steady this morning.
Wheat futures are 4 to 8 cents higher in Kansas City, with slightly lesser gains being seen in Chicago and Minneapolis.
- Wheat futures are being supported by dryness concerns in the Plains. Traders are expecting HRW crop condition ratings to decline again in this afternoon's update from USDA. As a result, Kansas City futures are leading gains.
- Spillover from corn and soybeans is also supportive, although mild strength in the U.S. dollar is keeping traders from actively buying wheat.
- Traders are hopeful demand for U.S. wheat will improve as Black Sea origin supplies tighten. There hasn't been strong proof of that yet, although weekly export sales released last Friday were stronger than expected.
Live cattle futures are mixed with most contracts mildly favoring the downside.
- Last week's strong gains are encouraging light profit-taking in live cattle futures to start the week. But selling interest is limited to mild corrective selling.
- Traders are expecting a round of retail beef features after Thanksgiving, which would be supportive for the boxed beef market.
- Traders will wait to form cash cattle opinions based on boxed beef trade and available market-ready supplies, but most traders are hopeful the cash market can build on recent price strength. Cash cattle traded $2 to $3 higher last week at $127 to $128 in the Plains.
- Feeder cattle futures are favoring the downside amid the mostly weaker trade in live cattle and strength in the corn market.
Lean hog futures are showing slight gains to start the week.
- Steady to firmer cash hog bids are supportive for lean hog futures this morning. But buying interest is being limited by the premium futures hold to the cash market.
- Cash hog bids are steady to $1 higher across the Midwest as packers work to fill slaughter runs coming out of Thanksgiving. Profitable cutting margins given packers incentive to keep kill lines as full as possible.
- Technically, lean hog futures are strong with the December contract building on the price rally and deferred futures holding near recent contract highs.