Corn futures are steady to 2 cents lower on light followthrough selling.
- Price action in the corn market has been muted so far today as traders await this morning's Federal Reserve policy-setting statement.
- Futures are seeing light followthrough from yesterday's losses as USDA's December Supply & Demand Report data didn't provide any bullish surprises.
- A weaker dollar index is limiting pressure on the commodity sector this morning.
Soybean futures are 5 to 8 cents lower on followthrough from yesterday's losses.
- Traders were disappointed USDA didn't raise its export projection yesterday, although it did raise crush to trim carryover by 10 million bu. from last month.
- Yet, futures are seeing followthrough from yesterday's losses as traders remain cautious this morning about adding risk ahead of the Fed's statement.
- Additional pressure is coming from weakness in Gulf basis for nearby delivery.
- Traders are also keeping an eye on South American weather with forecasts calling for more rains to aid drier areas in southern Brazil this week.
Wheat futures are favoring a firmer tone in mixed trade amid light short-covering.
- Following yesterday's sharp losses, wheat futures are enjoying modest short-covering this morning, although buying is limited and price action is choppy as traders are cautious about adding long positions.
- Traders still have yesterday's 50-million-bu. increase to 2012-13 carryover on their minds.
- Wheat futures did chart damage yesterday. March Chicago wheat has slipped to its lowest level since early July to extend the decline from the August high.
Live cattle futures are called to open mixed on a combination of followthrough buying and profit-taking.
- Following yesterday's sharp gains, traders are cautious about further extending long positions, although the short-term technical outlook has improved.
- Traders are also more optimistic about a near-term cash low being in place given sharp strength in the boxed beef market. Yesterday, Choice values rose $2.12 and Select boxes were up $1.74 on movement of 189 loads.
- Outside markets are expected to contribute to a choppy tone this morning, as investors await this morning's policy-setting statement from the Federal Reserve.
- Feeder cattle futures are could find support from modest weakness in the corn market, although nearby futures hold a sizable premium to the cash index.
Lean hog futures are expected to favor a firmer tone thanks to improved packer margins.
- Futures are expected to see some followthrough strength from yesterday's gains, although buying will be limited by nervousness about fiscal cliff negotiations.
- The cash hog market is called steady to lower as packers say they are having no difficulty securing needed supplies.
- The pork cutout value slipped a penny yesterday, but movement was very strong at 148.5 loads.
- Yesterday, February lean hog futures filled last week's gap area, but still have some work to do in order to signal a near-term low has been secured.