Corn futures are down 1 to 3 cents on position evening ahead of the long weekend.
- Traders are evening positions ahead of the long Memorial Day weekend.
- The wet, chilly weather forecast for the Corn for the next week is creating some uncertainty about planting progress and is raising concerns some corn acres will be switched to soybeans or other crops. Those concerns are limiting selling pressure in new-crop contracts.
- Early estimates for planting progress, which will be reported by USDA Tuesday, call for planting to advance to 85% to 92% complete with emergence expected to remain well behind the norm.
- Futures are seeing light pressure from news China bought U.S. SRW wheat and that Taiwan purchased Brazilian corn -- a reminder of further demand destruction.
- Gulf corn basis is 1 to 2 cents lower for last-half June and July delivery and 1 to 2 cents higher for September delivery.
- A slightly weaker U.S. dollar is supportive to futures
July soybeans are 21 cents lower, August futures are 13 cents lower and September is down 4 cents. The rest of the market is mostly 2 cents higher on some bull spread unwinding activity.
- July futures slumped on rumors China had canceled Brazilian soybean purchases, fueling concerns of weakening demand for the tight old-crop supplies.
- An increase in farmer selling weakened basis levels and pressured the front-month contract today in early trading.
- Gulf soybean basis declined 10 to 15 cents for May and June delivery this morning, though it firmed 5 cents for early July delivery. At the late-morning update, Gulf basis is unchanged except for first-half July delivery, which is 5 cents lower.
- New-crop futures are finding some support from the reduced planting pace for soybean futures, but some concern is rising that the slow corn planting pace, especially in the Upper Midwest, will push some intended corn acres to soybeans.
Wheat futures are down 3 to 5 cents in Chicago, down 5 to 8 cents in Kansas City and down 3 to 6 cents in Minneapolis.
- Wheat futures are lower in spillover selling from corn and profit-taking pressure ahead of the weekend.
- The market is shrugging of news China purchased 180,000 MT of U.S. soft red winter wheat for 2013-14 delivery (which begins June 1) as old new as it confirms rumors that circulated yesterday.
- Traders view recent moisture in the Plains and forecast for more as long-term positive for HRW and the still unplanted HRS wheat.
- Gulf basis in unchanged at midday.
Live cattle futures are seeing light to moderate gains. Feeder cattle futures are mostly sharply higher.
- Position evening ahead of the extended holiday weekend dominates trading.
- Cash cattle trade is thought to be complete at $124 in the South, but so far just light sales have taken place in northern locations at $125.00 to $125.50. Trade in both areas so far was down $1.00 to $1.50 from the week prior.
- Choice beef posted its first decline in nearly two weeks with a price slide of $1.44 this morning to $209.93. Select beef is down 41 cents and movement is light at 64 loads.
- Traders have been talking for more than two weeks that consumers would rebel against high beef prices, and today's downturn in Choice beef is the first evidence of that, they maintain.
- Feeder cattle are higher on weakness in the corn market and U.S. dollar index.
Lean hog futures are slightly to moderately higher on position evening.
- Position evening is the dominant feature of today's trade.
- Cash hog bids are mostly steady today and packers are expected to face declining supplies next week.
- Pork cutout value rose $1.48 today on moderate movement of 155.6 loads. This is giving bulls an edge today.
- Futures are also gaining support from weakness in the U.S. dollar index, losses in the corn pit and gains in the cattle market.