Corn futures are 2 to 4 cents higher on short-covering and weakness in the U.S. dollar.
- Outside markets are friendly for adding risk this morning. The U.S. dollar index is weaker as there's little fresh economic news to digest.
- There's a growing perception the bulk of harvest-related hedge pressure is now complete. Yesterday's progress report showed corn harvest was 39% complete as of Sunday and harvest is expected to cross the halfway point this week.
- Gulf corn basis is 3 cents stronger for immediate delivery, adding to ideas the market is quickly absorbing new-crop supplies.
- South Korea purchased 133,000 metric tons (MT) of South American corn and 120,000 MT of optional origin corn.
Soybean futures are 11 to 15 cents higher on short-covering.
- Soybean futures are being supported by ideas the downside correction is overdone and by positive outside markets.
- Yesterday's crop progress data showed harvest more advanced than expected at 22% complete as of Sunday. This signals there is potential for more hedge-related harvest pressure ahead, as this typically doesn't ease until half of the crop has been harvested.
- Gulf soybean basis is steady this morning.
Wheat futures in Chicago and Minneapolis are mostly around 1 to 2 cents higher, but some scattered selling is being seen in Kansas City futures.
- Upside potential in the wheat pit is being limited after yesterday's progress report showed 25% of the winter wheat crop was planted, which is in line with the five-year average. Traders were somewhat surprised that producers were willing to plant in dry soils, leading to expectations all intended acres will be seeded.
- But wheat is benefiting from spillover from corn and soybean futures, as well as a friendly tone coming from key outside markets. The U.S. dollar index is weaker this morning, which is helping lift crude oil and gold futures.
Live cattle futures are called to open mixed.
- The poor start to the boxed beef market for the week is expected to limit buying in live cattle futures this morning as it signals a near-term high has been posted.
- This week's showlist is about equal to last week, which doesn't provide a strong cash signal for bulls or bears.
- Strength in the corn market is expected to weigh on feeder cattle futures this morning.
Lean hog futures are called cautiously higher on support from the cash market.
- The cash hog market is called steady to firmer as profitable margins are giving packers reason to push as many hogs through kill lines as possible.
- The pork cutout value improved 50 cents yesterday, signaling a possible near-term low has been struck.
- Upside potential for futures, however, could be limited as nearby contracts are trading at a lofty premium to the cash index.