Nearby corn futures are choppy with a slight downside bias.
- Price action is choppy this morning, although futures are favoring a weaker tone after disappointing weekly export sales.
- Weekly corn export sales came in well short of expectations. USDA reported a net sales reduction of 33,700 metric tons (MT) for 2011-12 and 168,400 MT sold for 2012-13.
- Mississippi Governor Haley Barbour says the biggest damage from Isaac maybe to crops, increasing attention to the storm as it slowly moves north out of the Gulf.
Soybean futures are narrowly mixed this morning, with nearby contracts mostly around a penny lower.
- Soybeans traded sharply lower in early overnight trade on profit-taking, but short-covering returned as attention turns to potential crop damage from Isaac as the storm moves inland.
- Weekly export sales reduction of 10,100 MT for 2011-12 were more than offset by 731,400 MT sold for 2012-13. Combined, sales met expectations, with China right behind "unknown destinations" as the top buyer for 2012-13.
Wheat futures are favoring a weaker tone in choppy trade.
- Russia's deputy ag minister says there's no need to curb grain exports at this time despite production losses due to drought. That is easing expectations Russian officials will announce moves to limit exports after a meeting on the grain situation Friday.
- Meanwhile, SovEcon trimmed its Russian wheat crop forecast by 1 million metric tons (MMT) to 38 MMT.
- Weekly export sales of 508,400 MT for 2012-13 and sales of 900 MT for 2013-14 were within expectations.
Live cattle futures are called to open steady to higher ahead of cash trade.
- Very light cash cattle sales have been reported in the Midwest and Nebraska, but trade has been slow to develop in the Southern Plains as feedlots are holding out for higher prices while packers are showing little interest in actively buying cattle.
- But if live cattle futures are stronger again this morning, cash sources say it could improve cash prospects.
- Meanwhile, Choice and Select boxed beef values were each 99 cents lower yesterday, but movement improved to 230 loads.
Lean hog futures are called to open steady to lower amid building supplies.
- The pork cutout value was 67 cents lower yesterday, but packer t margins remain well in the black as they continue to lower cash bids due to plentiful supplies.
- Packers are having no difficulties securing supplies, but cash sources say the pace of declines in the cash market could slow.
- Pressure on nearby lean hog futures should be limited by the large discount those contracts hold to the cash index.