Corn futures are mostly around a penny lower.
- Corn is seeing light followthrough from yesterday's losses, although weakness in the U.S. dollar index is limiting selling interest.
- News Taiwan has canceled a tender for U.S. corn due to high prices is adding to the negative tone.
- Otherwise, there's little fresh news for the market to digest, and investors are weary about the impasse in the fiscal cliff negotiations.
- December 2013 corn futures are pivoting around $6.00 after closing below this level yesterday.
January through August soybean futures are fractionally to 3 cents higher, with deferreds mixed.
- Soybean futures have favored a firmer tone amid short-covering and on help from weakness in the U.S. dollar index.
- But upside potential is being limited to short-covering due favorable growing conditions in Brazil.
- Pressure this morning also stems from news Taiwan has canceled a tender to purchase U.S. soybeans due to high prices.
- January soybean futures are currently supported by last week's low of $14.02 3/4, with resistance at last week's high of $15.08 3/4.
Wheat futures are favoring a weaker tone in Chicago and Minneapolis, although some scattered buying has led to mixed trade at times. Kansas City wheat is choppy.
- The lack of fresh demand news is weighing on the market again this morning, as is the negative technical posture of the market.
- Weakness in the dollar index is helping to spur some short-covering, although the lack of widespread buying signals bearish attitudes are building.
- March Chicago wheat is testing $7.64 1/2, which marks a 62% retracement of the rally from the May low. Violation of this support would make bears' next target the May low of $6.52.
Live cattle futures are called steady to firmer on followthrough buying, cash optimism.
- Live cattle are expected to benefit from followthrough from yesterday's gains and cautious optimism about higher cash cattle trade this week.
- Choice boxed beef values were up $1.15 and Select was up $1.40 yesterday and movement was impressive at 292 loads. This, combined with a smaller showlist are leading to expectations for higher cash trade, possibly today.
- Traders, however, have higher cash trade priced into the market, which could limit buying this morning, especially with fiscal cliff worries looming.
Lean hog futures are called mixed as traders even positions ahead of tomorrow's Hogs & Pigs Report.
- Futures are expected to be choppy this morning as traders work to even positions ahead of Friday's Quarterly Hogs & Pigs Report, which is expected to show farrowing intentions below year-ago levels.
- Meanwhile, most packers have seen profit margins return to the black, but demand for hogs is limited as packers are well supplied for this week's holiday shortened kill schedule.
- February lean hog futures are trading at around a $5 premium to the cash index, which could spur some short-covering, especially if traders focus on the looming fiscal cliff.