Corn futures have seen mixed trade this morning, with most contracts currently favoring the downside.
- December corn is pivoting around support at yesterday's low of $7.47, trading mid-range ahead of the start of pit trading.
- Yesterday's progress data showed corn harvest 26% complete, which was near traders' expectations but signals there is the possibility of more hedge-related pressure ahead.
- Firmer Gulf corn basis is helping to lift futures off their lows, as it reflects the tight supply situation.
Soybean futures are 10 to 30-plus cents lower, with nearbys generally leading losses on followthrough from yesterday's limit-lower losses.
- Funds continue to lighten their long exposure to the market, with futures seeing followthrough from yesterday's limit-lower losses.
- Reports of better-than-expected early yield results from the Midwest are also providing pressure this morning, as well as a fast start to harvest.
- Negative outside markets are adding to pressure in the bean pit.
Chicago wheat is mixed, with Kansas City and Minneapolis futures are roughly 5 to 9 cents higher.
- Wheat is shrugging off spillover from the soybean pit, with pressure limited by the tightening global stocks situation.
- Ongoing drought conditions in the Central and Southern Plains raises concerns about establishment of winter wheat. Yesterday's progress report showed 11% of the winter wheat crop was seeded, which compares to 14% on average.
- December Chicago wheat is hovering around support at yesterday's low of $8.76 1/4.
Live cattle futures are called steady to higher on short-covering.
- Following yesterday's sharp losses, live cattle futures are due for a corrective rebound. But buying will be limited by negative outside markets.
- The boxed beef market started the week on strong footing, as Choice values rose $1.51 and Select was up $1.78 on solid movement of 171 loads.
- This week's cattle showlist is smaller than last week, but packers want to see their margins return to the black before raising bids further. Cash cattle trade could be delayed until well into the week.
Lean hog futures are called steady to higher on stability in the cash market.
- Traders say recent steady action in the cash hog market is a signal the worst is behind in terms of sow liquidation and price pressure. The cash hog market is expected to be mostly steady again today.
- But the pork cutout market has a lot of work ahead to signal a low has been posted. Pork values were 16 cents lower and only 46.88 loads of products were moved yesterday.
- Negative outside markets will limit buying to short-covering in lean hog futures today.