Corn futures are 6 to 8 cents lower on spillover from soybean futures.
- Corn futures are weaker this morning on spillover from sharp losses in soybeans. But so far December corn has remained within yesterday's trading range.
- Traders are also reacting to news FC Stone raised its corn crop estimate to 10.824 billion bu. with an average yield of 123.9 bu. per acre.
- Meanwhile, Gulf basis is steady to firmer for immediate delivery, but weaker for delivery early next year.
Soybean futures are 7 to 13 cents lower on followthrough selling, but are well off the overnight lows.
- Soybean futures have moved off session lows, but are extending the decline from the all-time high due to reports of "better-than-expected" soybean yields.
- Adding to pressure is news FC Stone increased its soybean crop to 2.849 billion bu., with an average yield at 38.2 bu. per acre.
- Meanwhile, USDA announced a soyoil sale of 21,000 metric tons (MT) to China for 2012-13, which comes as a surprise given the country is celebrating a national holiday this week. This follows rumors yesterday that China was back buying soybeans.
- Gulf soybean basis is steady this morning, which doesn't suggest a pickup in demand has been seen.
Chicago and Kansas City wheat futures are mostly 6 to 9 cents lower, with Minneapolis wheat mostly 2 to 4 cents lower.
- Wheat is seeing spillover from neighboring markets, as well as pressure from strength in the U.S. dollar index.
- Traders are awaiting results of Egypt's wheat tender. The country has recently gobbled up supplies from the Black Sea region, but they are dwindling.
- Adding to pressure is recent rains in the U.S. Central and Southern Plains.
- Meanwhile, warm, dry weather is hampering establishment of the winter wheat crop in eastern Ukraine and southern Russia.
Live cattle futures are called to open higher based on improvement in the beef market.
- Choice boxed beef values improved $1.30 yesterday and Select firmed 14 cents on strong movement of 211 loads.
- Beef market strength is raising expectations for at least steady cash cattle trade, although bids and asking prices remain several dollars apart.
- Feeder cattle futures are expected to see a lift from ongoing weakness in the grain markets.
Lean hog futures are called higher based on sharp gains in the pork cutout market.
- The pork cutout value surged $3 yesterday to lift packers' profit margins. Strong gains were seen across the cuts yesterday, with bellies leading the way.
- Strength in the pork market is expected to raise packer demand for cash hogs, with steady to $1 higher bids expected this morning.
- October lean hog futures are trading at around a $3 premium to the cash index, signaling traders have a near-term positive bias toward the cash market.