Corn is 3 to 13 cents higher on spillover from soybeans and weather concerns.
- Front-month September corn has been choppy this morning, with upside potential limited by basis deterioration. However, buying is picking up on weather concerns and surging soybean futures.
- The extended outlook calls for hot and dry conditions to persist the remainder of the growing season and next week is expected to hold some of the hottest temps yet of the summer.
Soybean futures are 11 to 30-plus cents higher on concerns about pod-filling weather.
- Crop reporters say while damage has occurred for soybeans, the plants could still turn around with a rain, as the key pod-filling stage is ahead. But traders are increasingly concerned about the hot and dry forecast for next month.
- August soybean futures posted an all-time high according to the weekly continuation chart of $17.77 3/4 earlier this morning.
Wheat futures are favoring a firmer tone in mixed trade.
- Upside potential in the wheat pit is being limited as traders opt to take some profits out of the market after a very active week of trade. But strong gains in the bean pit has the market favoring a firmer tone.
- While wheat's fundaments are much more positive than a month ago amid persistent global crop concerns, global stocks are still expected to be plentiful. As a result, once corn tops, wheat will likely follow.
Live cattle futures are called mixed as traders even positions ahead of this afternoon's reports. Feeder futures are called lower on strength in the grain markets.
- Traders will get a reminder of the tightening supply situation this afternoon when USDA releases its Cattle Inventory Report. The report is expected to show All Cattle & Calves at 98.6% of year-ago.
- Live cattle are vulnerable to some profit-taking, however, as nearby futures added some premium into prices on anticipation Japan is closer to finalizing its rule to expand beef imports from the U.S. to 30 months from 20 months or younger.
- Strength in the corn market is expected to weigh on feeder futures this morning.
Hog futures are called mixed, with pressure limited by the discount nearby contracts still hold to the cash index.
- Pressure on futures should be limited by the discount nearby contracts hold to the cash index, as well as tightening supplies.
- But upside potential will be limited as traders expect this afternoon's Cold Storage Report to show pork stocks at record levels for the end of June.
- The cash hog market is expected to be mostly steady today, but some firmer bids are possible as some plants are still in need of hogs. Packers are still operating with negative profit margins.