July corn has firmed and is about 12 cents higher, while the new-crop months are mostly 1 to 3 cents lower.
- Tight supplies and spillover from soybeans are supporting July corn futures.
- Informa Economics reportedly decreased its planted corn acreage forecast by 455,000 acres from USDA's March Prospective Plantings Report to 96.827 million.
- The stronger U.S. dollar index and active planting progress in the Corn Belt continue to be negative factors.
- Traders expect Monday's progress report from USDA to show at least 60% of the crop has been planted.
- Planting should slow as rains are moving across the Upper Midwest this morning and more rain is in the forecast for much of the Midwest early next week.
- Gulf basis is unchanged at midday.
Soybean futures started the day session under pressure, but all contracts have moved higher with old-crop futures up around 16 cents and new-crop up 5 to 7 cents.
- Concerns over potential labor unrest at Brazilian ports due to passage of a port modernization bill by the Brazilian congress has traders bidding old-crop futures higher. Any near-term labor unrest in Brazil means more demand for limited U.S. old-crop supplies even if the modernization, when completed, would be bearish for U.S. soybeans.
- Traders shrugged off a forecast by Informa Economics of a 1.2 million-acre increase in 2013 soybean acreage. The firm reportedly pegs total planted soybean acreage at 78.286 million acres, up from USDA's 77.1 million in March.
- Gulf soybean basis has moved to unchanged at midday.
- USDA announced a 138,000-MT soybean sale to an unknown destination this morning, with 18,000 MT for 2012-13 and 120,000 MT for 2013-14, as well as a 120,000-MT sale to China for 2013-14.
Wheat futures are down 4 to 5 cents in Chicago, down 4 to 7 cents in Kansas City and narrowly mixed in Minneapolis.
- Minneapolis wheat is finding light support from Informa Economics' projection of a 300,000-acre decrease in planted spring wheat acreage from USDA's Prospective Plantings Report to 12.4 million acres.
- Rain in the Northern Plains with more in the forecast is also lifting the Minneapolis wheat market as it slows spring wheat planting.
- The strong dollar continues to pressure Chicago and Kansas City wheat along with the slight decline in new-crop corn futures.
- Gulf basis levels remain unchanged.
Live and feeder cattle futures have softened to mostly moderately lower trade.
- Traders continue to ignore surging Choice boxed beef prices. Choice beef moved to another all-time high of $208.96, up 19 cents, this morning. Select slipped 19 cents to $192.52. But movement was a slim 58 loads.
- The trade senses a trend change for both cash and dressed beef prices, expecting consumers to balk at the record beef prices and shift to pork and chicken.
- The push and pull between feedlots and packers continues. Feedlots believe prices even with last week's $126 level are justified given record boxed beef prices. Packers are looking at slumping movement.
- Some cattle have moved in Kansas at $125.50, following trade yesterday in Texas at $125.
- The strong U.S. dollar continues to raise export demand concerns.
- The market is also reading for the Cattle on Feed Report this afternoon. It is expected to show On Feed at 96.3% of year-ago, Placements at 112.1% and Marketings at 102.9%.
- The market also expects this afternoon's Cold Storage Report to show frozen beef stocks to be down slightly from the previous month and about even with a year ago.
- Feeder cattle are lower on the sell-off in live cattle futures and gains in old-crop corn.
Nearby lean hog futures have softened to trade moderately to sharply lower through the October contract; more deferred contracts are slightly higher.
- Nearby futures have turned lower in sympathy with the sell-off in live cattle futures.
- The selloff is occurring in conjunction with a 19-cent decline in pork cutout value reported late-morning. Movement is light at 123.2 loads.
- The trade looks for the afternoon's Cold Storage Report to show a slight increase in the amount of frozen pork in storage. Traders are looking for a 1.5% increase versus the previous month and an 11% rise versus the five-year average.
- Cash hog bids are mostly steady today.
- The strong U.S. dollar index continues to raise export demand concerns for pork.