Corn futures are mostly 1 to 3 cents higher on spillover from soybeans.
- Corn is firmer this morning on spillover from soybeans, as there's little other fresh news for corn traders to digest.
- Rains in Argentina are also supportive for corn, as it's delaying planting and raises the risk some acres could be switched to soybeans.
- December corn futures are testing resistance at Friday's high of $7.69. A close above this level and the October high of $7.76 would open fresh upside potential.
Soybean futures are 9 to 15 cents higher on concerns about South American weather.
- Soybean futures are seeing a boost from dryness in Mato Grosso, Brazil, which is slowing soybean planting and raising concerns about lingering drought hurting crop prospects.
- Soybeans have remained near session highs despite this morning's rebound in the U.S. dollar index to near unchanged after heavier pressure overnight.
- November soybean futures started the overnight session weaker and have seen trade below support at Friday's low and above Friday's high. Followthrough from Friday's strong weekly close would signal bulls are gaining momentum.
Wheat futures are 6 to 8 cents higher at all three exchanges on followthrough buying and global crop concerns.
- Wheat is seeing followthrough from Friday's strong weekly close as traders recognize global wheat stocks are tightening.
- Traders remain concerned about dryness in Ukraine and Russia, as it threatens the establishment of the winter wheat crop. Meanwhile, recent rains in the U.S. Southern Plains are helping with emergence of the winter wheat crop, but additional rains are needed due to the lingering drought.
- Wheat has remained strong despite this morning's recovery in the U.S. dollar index, as the dollar remains in a short-term downtrend.
Live cattle futures are called higher as traders respond to Friday's bullish Cattle on Feed Report.
- Friday's Cattle on Feed Report showed all categories below traders' expectations. Placements at 81% of year-ago will spur a stronger pace of buying in the deferred contracts than in nearby futures.
- Once the report is factored into prices, traders will be watching the boxed beef market closely for cash clues. Beef prices rose overall last week, but softened on Friday.
- Strength in corn futures could temper buying in feeder cattle futures, although tightening calf supplies are expected to provide an early boost to futures.
- Traders are also readying for this afternoon's Cold Storage Report, which is expected to show stocks in freezers at the end of September of 423.6 million lbs., which would represent a 1.4% drop from last month.
Lean hog futures are called to open mixed, with buying limited by demand concerns.
- Futures are expected to see a choppy start as traders even positions ahead of this afternoon's Cold Storage Report. The report is expected to show pork stocks at the end of September a record for the month at 620.3 million pounds.
- But selling should be limited by strength in the pork market, as the cutout value rose $1.26 on Friday to lift packers' profit margins.
- Still, the cash hog market is expected to be mostly steady to weaker today as packers have ample supplies to draw from.