Corn futures are mostly 4 to 7 cents lower but off session lows, with nearby contracts leading losses amid profit-taking.
- Traders are opting to take some profits out of the market as the calendar flips to August and there's no fresh demand news.
- While weather remains threatening for the crop as the outlook calls for above-normal temps and below-normal precip to continue into next week, traders recognize historic prices are rationing use.
- December corn spiked support at last week's high of $7.90 but is now pivoting around the psychological $8.00 level.
Soybeans are 2 to 19 cents lower, with nearby contracts leading losses as traders opt to take some profits out of the market.
- Traders are taking a "risk-off" approach this morning as they wait on the Fed to make its statement following its policy meeting. No major announcement is expected.
- There are still no clear-cut signs prices have risen enough to slow usage dramatically. In fact, sources say Chinese supplies have tightened enough to where the market is anticipating additional purchases.
- November beans are pivoting around support at yesterday's low of $16.29 3/4.
Most wheat futures at all three exchanges are posting double-digit losses, with Chicago wheat the downside leader.
- While global crop concerns linger, supplies are still thought to be adequate and signs of rationing in the corn market make traders concerned the same is happening for wheat.
- Ukraine says it will give the world a two-month notice before any restrictions on grain exports are announced.
- Stepped-up harvest-related hedge pressure is also weighing on Minneapolis wheat futures.
Live and feeder cattle futures are called to open firmer on weakness in corn.
- Weakness in the corn market this morning is expected to lift live cattle futures and encouraging short-covering in the feeder market.
- Traders are counting on $1 to $2 higher cash cattle trade compared to last week's $114 trade due to improved boxed beef movement so far this week on firmer prices.
Lean hog futures are called steady to lower on concerns about building supplies.
- Bears currently hold momentum on their side as focus has turned to an increase in near-term supplies due to expected herd liquidation.
- The cash hog market is called steady with a downward bias as packers work to improve cutting margins.
- The pork cutout value was unchanged yesterday on strong movement of 100.25 loads.