I'll be at the fair. I'll be out of the office until the start of the Pro Farmer Midwest Crop Tour. Stop by and say hi to me in the Shorthorn aisle at the Iowa State Fair or at the Iowa Food and Family Project exhibit at the Varied Industries Building on Friday afternoon!
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Overnight highlights. Following are highlights of overnight trade (as of 6:40 a.m. CT) and opening livestock calls:
Corn: 3 to 5 cents higher. Futures are seeing light short-covering support this morning after yesterday's narrowly traded day that resulted in slight loses. Traders are reevaluating positions, with pressure limited by tight supplies and buying limited by the availability of corn from the South. But traders are noting increased interest from commercial buyers, which suggests supplies are even tighter than anticipated.
Soybeans: 10 to 16 cents higher. Futures continue to trade in the month-long choppy consolidation range, with pressure limited by tight supplies. But milder weather conditions have limited selling, as traders believe the crop is "holding on" to yield potential. Sources also say sales of South American soybeans have almost ended, as supplies tighten there as well.
Wheat: 4 to 8 cents higher. Despite strength in the U.S. dollar index, wheat futures are seeing spillover from neighboring pits. September Chicago wheat posted a fresh monthly low yesterday to signal the market had posted a high. Violation of $8.23 1/2 would confirm a high, as it marks the 38% retracement of the rally from the June low.
Live cattle: Steady to higher. Futures are expected to see a lift from the beef market, as Choice values rose another $2.32 yesterday and Select was up $2.42. But movement has slowed at higher prices, as only 151 loads changed hands yesterday. Cash cattle trade is expected later in the week, but expectations are for packers to raise bids another $1 to $2 this week after they paid $119 to $120 last week.
Lean Hogs: Steady to higher. While pork cutout values slipped 33 cents yesterday, packers' profit margins have been in the black for nearly a week. The cash hog market is called steady to lower amid plentiful supplies, but futures are expected to see a lift from comments made by a Chinese trading firm that it sees the country's pork imports from the U.S. rising around 29% this year.