Corn futures are 2 to 5 cents higher on short-covering.
- Corn is enjoying light short-covering to erase yesterday's losses despite strength in the U.S. dollar index.
- The dollar is reacting to news the International Monetary Fund has cut its global growth forecast, although it said it doesn't expect a hard landing in China.
- Traders are focused on evening positions ahead of Thursday's USDA reports, which are expected to show a smaller corn crop and tighter 2012-13 carryover than last month.
- Gulf corn basis is 1 to 4 cents lower for nearby shipment, which reflects demand destruction. But basis has firmed for deferred shipment.
Soybean futures are mostly 15 to 17 cents higher on pre-report positioning.
- Soybeans have more than reversed yesterday's losses, with traders focused on evening positions ahead of Thursday's USDA reports which are expected to reflect a smaller crop and drop in carryover to very tight levels.
- Brazil's government sees record soybean plantings and record production this year. Conab put its initial 2012-13 crop projection at 82.8 MMT.
- China's government will auction 400,000 MT of soybeans on Thursday in an attempt to stabilize domestic prices. Despite these auctions, China has remained an aggressive buyer of U.S. supplies.
- China's central bank has injected more money into its economy to improve economic activity, but this hasn't calmed investors' concerns about a slowdown in its economy.
Nearby wheat futures at all three exchanges are 6 to 8 cents higher, with deferred futures favoring a firmer tone in mixed trade.
- Wheat futures are firmer on spillover support from corn and soybeans, as well as global crop concerns.
- Australia says the chances of El Nino developing have been reduced and the Indian Ocean Dipole is in a positive event. This increases the risk of drier conditions for key wheat areas in the country.
- Russia's ag minister said the country will harvest 40 MMT of wheat and reiterated his opposition to using grain export restrictions.
- Traders expect USDA to trim 2012-13 U.S. wheat carryover in Thursday's report and will be watching the global balance sheets for supply reductions.
Live cattle futures are called to open steady to firmer amid tightening supplies.
- Live cattle futures are expected to see a boost from tightening supplies, which gives feedlots more bargaining power in cash negotiations.
- Choice boxed beef values were 58 cents firmer and Select rose 78 cents yesterday on moderate movement of 138 loads.
- But negative outside markets will limit buying interest in live cattle futures.
- Feeder futures are expected to be pressured by strength in the corn market.
Lean hog futures are expected to open with a mixed tone, with buying limited by mostly steady cash hog bids.
- Packer demand for cash hogs remains solid, but a seasonal increase in supplies has packers protecting profit margins. As a result, cash bids are expected to be mostly steady.
- The pork cutout value started the week 2 cents higher, which has traders talking about the possibility of the market reaching a seasonal high. Only 20.5 loads of product changed hands yesterday.
- October lean hog futures are trading at around a dollar premium to the cash index. But December hogs, which will soon be the lead-month contract, are trading at around $3.50 discount to the index.