Corn futures are around 7 cents lower at midday.
- An upswing in harvest activity and profit-taking after recent gains have pressed prices lower.
- Leading the move lower are reports of better-than-expected yields in Illinois and Iowa.
- With harvest back in full swing, traders have moved to the sell side in anticipation of hedge-related pressure.
- Reports of some farmer selling as new-crop supplies come available have also caused basis levels to soften.
- The market is shrugging off reports indicating export demand has increased. While traders did receive export inspections data yesterday, other official export data is absent due to the government shutdown. Traders are unwilling to rely primarily on private sources for export demand news.
- France's farm ministry cut its corn crop estimate by 100,000 MT to 15.5 MMT, but that's still up 2.9% from year-ago.
Soybean futures are 12 to 13 cents lower.
- Profit-taking and reports of better-than-expected yields have turned futures lower after the opening of pit trading. Futures had traded higher in the overnight session.
- Futures are also feeling some spillover pressure from weakness in corn futures and strength in the U.S. dollar index.
- Traders increased sales after the November contract failed to find active buying interest above $13.00.
- Besides reports of better-than-expected yields, forecasts for favorable harvest weather has traders anticipating an increase in hedge-related pressure.
- Traders are ignoring tight carryover supplies and strong demand that have kept basis levels at historically high levels. Export inspections data yesterday indicated exporters are upping their bean buys.
Wheat futures are mixed with SRW around a penny weaker, while the HRW and HRS wheat markets are 2 to 3 cents higher.
- Profit-taking and spillover pressure from corn futures have taken SRW futures lower.
- Continuing crop concerns in the Black Sea region are limiting selling interest and are lifting HRW and HRS futures, as reports circulate that winter weather has halted seeding of winter grains across areas of Russia and Ukraine.
- Also, France's farm ministry cut its wheat crop estimate by 117,000 MT from last month to 36.9 MMT, although that still represents a 3.8% increase from year-ago. The country's soft wheat exports since the start of the 2013-14 marketing year total 2.6 MMT, a 17% increase from the previous marketing year.
Live cattle futures continue to trade mixed with nearbys posting slight gains and summer 2014 contract steady to lower. Feeder cattle futures are moderately higher.
- Futures continue to chop around unchanged as traders wait for cash trading to begin. Early indicators are for steady to higher trade.
- Showlist estimates are estimated to be down 19,000 head across Kansas, Texas and Colorado, but they are up around 5,000 head in Nebraska. This should give feedlots the advantage in negotiations.
- Feedlots are reportedly asking $128 for cash cattle, but packers have not yet placed bids.
- The $2 premium October futures hold to last week's mostly steady cash cattle trade at $128 is limiting buying.
- Packers are reportedly cutting in the red, which could limit their willingness to bid up for supplies.
- Private source Urner Barry reports Choice boxed beef values rose 18 cents yesterday while Select was up 77 cents.
- Feeder cattle futures are higher on the decline in corn futures..
Lean hog futures are steady to slightly higher.
- Cash hogs are mostly steady today as packer cutting margins are reportedly in the black. A large kill is expected Saturday.
- Without daily slaughter and pork cutout data, traders are watching the cash market more closely.
- Without daily government daily to rely on, traders are leading more heavily on technicals, which are strongly positive following the bearish Quarterly Hogs & Pigs Report.