Corn futures are 2 to 4 cents higher on followthrough from last week's gains.
- Corn futures are seeing a boost this morning on followthrough buying from last week's gains, although futures remain in their three-month consolidation range.
- Traders continue to note Friday's better-than-expected weekly export sales, which featured Japan as the lead buyer.
- Gulf corn basis is steady this morning. This signals there is no fresh export news on the horizon.
Soybean futures are mostly 8 to 12 cents higher, with nearby contracts leading gains.
- Soybean futures are getting a lift from tight supplies and concerns about South America weather, especially too-wet conditions in Argentina. Rains fell on some of the dry areas of Brazil over the weekend and more precip is in the forecast for central Brazil this week.
- USDA announced a 20,000 MT soyoil sale to unknown destinations for 2012-13, which follows a flurry of soyoil sales announced the last two weeks. Since Nov. 14, USDA has announced daily soyoil sales of 188,000 MT to unknown destinations and China.
- Gulf soybean basis is steady this morning.
Wheat futures are 4 to 6 cents higher on spillover from neighboring pits.
- Wheat futures continue to take their cue from the corn and soybean markets and are enjoying spillover support this morning.
- Traders are noting some fresh export business on the horizon, as Iraq and Jordan have tendered to buy wheat. But traders are waiting to see if the U.S. can attract any of the business before becoming too optimistic as prices here are still not as competitive as other sources.
- Traders expect this afternoon's crop condition data to show further deterioration in the HRW wheat crop, which is supportive for the market.
Live cattle futures are called to open steady to firmer.
- Futures are expected to see a firmer start as traders return to the market after Thanksgiving and reassess positions and fundamentals.
- Hopes for improved boxed beef demand after Thanksgiving are supportive. Traders expect retailers to more actively feature beef over the next couple of weeks.
- Downside risk will be limited by last week's strong finish, which improves the near-term technical outlook of the market.
- To build on last week's higher cash cattle trade in the Southern Plains at $127 to $128, the boxed beef market must continue to strengthen.
Lean hog futures are expected to see a choppy start as traders wait on direction from the cash market.
- December lean hog futures are trading at more than a $4 premium to the cash index, which signals traders have a positive bias toward the cash market near-term, but also limits further buying interest especially as market-ready supplies are abundant.
- The cash hog market is expected to be mostly steady today as cash sources say supplies and demand are in balance, but packers may need supplies later in the week and are working with profitable margins.
- Upside potential will be limited by weakness in the U.S. stock market, as investors keep an eye on U.S. fiscal cliff and Greek debt negotiations.