Corn futures are 2 to 4 cents higher on light short-covering.
- Futures were choppy overnight, but are currently trading near session highs amid corrective short-covering.
- After firming yesterday, Gulf basis has softened 3 cents this morning to stand 53 cents above May futures.
- The corn market must rebuild its demand base, which is keeping bulls on the sidelines and limiting upside potential to short-covering.
Soybean futures are 5 to 10 cents lower on followthrough selling.
- Soybeans have favored a weaker tone in overnight trade on spreading with corn.
- Futures only saw light short-covering yesterday and this morning have violated support at Monday's low to suggest the price slide has not run its course.
- Chinese soybean futures were lower overnight on concerns that bird flu in the country may reduce poultry production and feed demand. This is also weighing on soybean futures.
- Gulf soybean basis is steady this morning to stand 73 cents above May futures.
Wheat futures are 4 to 13 cents higher on concerns about the HRW wheat crop and hopes for more demand.
- Wheat is being supported by short-covering and help from concerns about HRW wheat crop concerns.
- The crop across the Plains came out of dormancy in worse shape than traders expected, which has renewed concerns about drought-related yield impacts.
- There are also hopes for more demand for U.S. wheat. Indian wheat is priced well above U.S. wheat and China is considering more U.S. spring wheat purchases amid disappointment with the gluten content of Canadian spring wheat shipments.
Live cattle futures are called mixed as traders reevaluate positions.
- Following yesterday's sharp losses live cattle are expected to see a choppy start as traders reevaluate positions.
- But yesterday's sharp decline has shaken feedlots' hopes for higher cash cattle trade, although strengthening boxed beef values this week signal at least steady cash trade is possible.
- Choice boxed beef values improved 89 cents yesterday and Select rose 91 cents, but movement hasn't been impressive this week as only 140 loads changed hands yesterday.
- Cash trade is still up in the air as packers haven't begun bidding for supplies and this week's showlist is up from last week.
Lean hog futures are called weaker on concerns about pork demand.
- Traders' concerns about pork demand were renewed after the pork cutout value dropped $1.05 yesterday and only 46 loads of pork changed hands.
- With packers' profit margins tight, many are expected to lower cash bids today.
- April lean hog futures are trading at more than a $5 premium to the cash hog index, which opens fresh downside risk for the market, especially if packers lower cash bids.