Corn futures are narrowly mixed, with strength in the U.S. dollar index limiting buying.
- Corn is in a follower's role this morning due to a lack of fresh news. Strength in the U.S. dollar index is limiting buying.
- Also limiting buying is a steady to weaker tone in Gulf basis this morning, which signals there's no fresh demand news on the horizon.
- But ongoing weather concerns in Argentina will limit selling. Planting delays due to heavy rains put total production in question.
Soybean futures are 3 to 6 cents higher on rumors of Chinese purchases.
- Gulf soybean basis is 1 cent firmer for immediate delivery, which supports rumors of additional Chinese soybean purchases.
- Traders are also keeping a close eye on the South American weather situation. While recent rains are benefiting crops in northern and central Brazil, dry conditions in southern Brazil point to reduced yield potential.
- Also supportive for oilseed markets this morning is Statistic Canada's lower-than-expected canola crop estimate of 13.31 MMT.
Chicago wheat is favoring a firmer tone in mixed trade, with Kansas City up marginally to 3 cents. Minneapolis wheat is marginally firmer.
- Wheat is enjoying spillover from neighboring pits, with strength in the dollar index limiting buying.
- Stats Canada's higher-than-expected all wheat crop estimate of 27.205 MMT is limiting buying, although the figure came within the range of traders' expectations.
- The weather situation in the Southern Plains remains supportive for the market. The HRW wheat crop will enter dormancy in the toughest shape since condition ratings began.
Live cattle futures are called mixed amid position squaring.
- Futures are expected to see a choppy start as traders wait on cash trade to develop. Expectations are for steady-at-best trade given this week's larger showlist.
- Moreover, the boxed beef market hasn't posted a strong performance this week. Choice values slipped 27 cents and Select was up $1.93 yesterday on moderate movement of 159 loads.
- Traders are also keeping a close eye on outside markets for price direction. The U.S. stock market is stronger this morning on positive private-sector payroll data released by ADP.
Lean hog futures are called mixed, with pressure limited by strength in the pork market.
- Lean hog futures are vulnerable to followthrough pressure from yesterday's losses, but some short-covering is expected to result in a choppy start.
- The cash hog market is expected to be steady to firmer again today, although there is concern about packers' negative profit margins.
- Pork cutout values firmed 23 cents yesterday, which is also a positive development for lean hog futures this morning.