Nearby corn is 12 to 15 cents higher on continued weather concerns, with deferred contracts up 2 to 9 cents.
- December corn came within a penny of $7.50 and is currently trading near the session high amid continued yield concerns. Scattered rains moving across Iowa are not enough to reverse yield damage and there's little other meaningful rain in the near-term forecast.
- USDA says a 120,000-metric-ton (MT) sale previously announced as optional origin to Mexico is not from the United States.
Soybeans futures are 19 to 28 cents higher due to concerns about yield.
- The forecast calls for above-normal temps and just light showers the next five days across the Corn Belt. Stress and damage to developing soybeans continues with the most severe conditions seen in the southern and eastern Belt.
- USDA announced a 150,200-MT soybean sale to unknown destinations, with 7,500 MT for 2011-12 and 142,700 MT for 2012-13. Soybeans have yet to find a price that dramatically slows demand.
Wheat is enjoying spillover from the corn pit to post double-digit gains at all three exchanges.
- Wheat remains in a follower's role to corn, but it is also being supported by global weather concerns. Quality issues are now being reported in Europe, impacting the feed and milling industries.
- September Chicago wheat has risen to a new-for-the-move high of $8.65 3/4.
Live cattle futures are called lower in reaction to lower cash cattle trade.
- Cash cattle trade began in the Southern Plains yesterday at $115, but then picked up at $114 -- which is down $3 from last week's trade.
- Continued pressure on the beef market is also expected to weigh on live cattle this morning, as it lowers cash expectations for next week. Choice values dropped $1.78 and Select was down 24 cents on strong movement of 248 loads.
- Feeder cattle futures are called sharply lower on continued strength in the corn market.
Lean hog futures are called lower on concerns about packers' profit margins.
- Packers have seen profit margins improve this week, although they remain well in the red. The cash market is called steady to $1 lower again this morning amid light demand.
- However, there is some encouragement about the pork market putting in a near-term low as losses have slowed. Pork values were down just 6 cents yesterday on very strong movement of 113.63 loads.
- August lean hogs are trading at around a $7 discount to the cash index, which should help limit pressure this morning.