Corn futures have trimmed early losses to trade 1 to 2 cents lower.
Corn faced light profit-taking pressure overnight, but losses were limited by concerns raised by the Pro Farmer Midwest Crop Tour. Yesterday's Tour results from Indiana and Nebraska showed yield potential down sharply from year-ago.
Gulf corn basis is steady this morning, which is an improvement from last week's levels that saw basis for nearby delivery soften due to the availability of supplies from the South.
Soybean futures have improved to mixed trade, with futures favoring the downside.
Early weakness was tied to profit-taking, with negative outside markets giving overnight traders little reason to add to long positions after futures posted fresh contract highs yesterday.
But disappointing pod counts from the Pro Farmer Midwest Crop Tour are helping to lift futures off their overnight lows this morning. Scouts are sampling in Illinois and Iowa today.
This morning Stats Canada pegged canola production at a record 15.410 million metric tons (MMT), which was still well below traders' expectations and therefore supportive for soybean futures this morning.
Wheat futures are mostly 4 to 7 cents lower at all three exchanges this morning.
Wheat was lower overnight on spillover from corn and soybeans, but remains weaker due to a firmer U.S. dollar index as global economic concerns return as a focus.
Adding to pressure this morning is the forecast for rains in the U.S. Central and Southern Plains, which would be timely for improving soil moisture ahead of winter wheat planting.
This morning's Stats Canada crop production report is neutral for wheat, as the all wheat production peg of 27.013 MMT was within expectations.
Live cattle futures are expected to start the day mixed as traders wait on cash cattle trade.
Traders in the cattle pit are waiting for more cash signals. August futures are now trading at a discount to last week's $120 to $121 cash trade.
Signs the boxed beef market is working on posting a near-term high will limit buying in live cattle futures, as beef prices were narrowly mixed yesterday.
Negative outside markets could add to pressure in the cattle pit, as the U.S. stock market is set for a weaker start due to concerns about slowed global growth.
Lean hog futures are called to open lower based on weakness in the pork cutout market.
Pork cutout values slipped $2.09 yesterday, but movement improved to 107 loads. But weakness on pork values raises concerns demand isn't keeping up with supplies.
Traders are also evening positions ahead of this afternoon's Cold Storage Report, which is expected to show pork stocks at 561.8 million lbs. -- which would still be a record high for the end of July.
Pressure on nearbys should be limited by the hefty discount those contracts hold to the cash index, although cash bids are expected to be 50 cents to $1 lower on rising supplies.