Nearby corn futures are trading 12 to 16 cents higher, while deferreds have turned mixed.
- The U.S. dollar index has weakened further on better-than-expected July employment data, which is spurring widespread commodity buying.
- Adding to support in the nearby contracts is news Informa Economics has reportedly slashed its corn yield estimate to 120.7 bu. per acre for a crop of 10.338 billion bushels.
- December corn is pivoting around yesterday's high of $8.08 1/4, making contract-high resistance of $8.20 1/2 within reach.
Soybean futures are 7 to 20 cents higher, with 2013 contracts leading gains.
- Focus in the market is on position squaring ahead of the weekend and positive outside markets are encouraging short-covering following yesterday's losses.
- Traders are concerned weekend rains won't be widespread enough to benefit the soybean crop, which has begun its key pod-filling stage.
- August soybeans are trading mid-range in a narrow range, while November beans are trading near session highs.
Wheat futures at all three exchanges have moved to fresh session highs to post 20-plus cent gains.
- Weakness in the U.S. dollar index is attracting fresh buying in the wheat pit this morning, as all signs point to strong demand for U.S. wheat given tightening global supplies.
- September Chicago wheat is outpacing gains in September corn futures to extend its premium due to tightening feed sources.
Live cattle futures are mixed, with feeders mostly lower.
- After a firmer start, live cattle futures have weakened on spillover from sharp losses in lean hog futures.
- Pressure on nearbys, however, is being limited by yesterday's $118 to $119 cash cattle trade, which was up $3 to $4 from last week.
- Feeder cattle futures turned mostly lower after corn futures extended gains.
Lean hogs are slightly to sharply lower, with nearbys leading losses
- The cash hog market is steady to $1 lower this morning amid expanding supplies. Sow liquidation and building supplies seasonally have packers working to improve profit margins.
- Early expectations are for additional cash weakness to start next week due to climbing supplies.
- August lean hog futures have extended losses, with next support the July low of $89.75.