Follow me on twitter @julijohnston
Overnight highlights. Following are opening grain and livestock calls at 7:20 a.m. CT:
Corn: 1 to 3 cents lower. Futures are slightly lower this morning amid a lack of fresh news. Early price action this morning will be directed by the weekly export sales report. Traders are hopeful demand has picked up on this week’s price break, although the weekly sales report was completed before last Friday’s limit down price move. Soybeans: Mixed. Futures are favoring a weaker tone in choppy trade this morning. Old-crop futures are mostly 1 to 2 cents lower, with new-crop mixed. Traders only expect fill-in buying now that Brazilian supplies are more readily available, although port congestion has resulted in a slow start to Brazil’s shipping season. The weekly export sales report this morning will help direct price action. Wheat: 2 to 4 cents lower. Wheat is seeing spillover from corn as well as profit-taking following yesterday’s sharp gains. Wheat traders yesterday responded to concerns about the HRW wheat crop, as this week’s rain event was a disappointment and the crop came out of dormancy in much worse shape than expected.
Live cattle: Mixed. Cattle futures are expected to be mixed today as this week’s cash cattle trade came in at the middle of last week’s trading range at $128. April live cattle are trading in line with this week’s cash trade, which should limit a wild price move today. Choice boxed beef values improved 6 cents and Select declined 61 cents yesterday, but movement picked up to 200 loads. Lean hogs: Steady to firmer. Lean hog futures are expected to build on yesterday’s late-session gains, although upside potential could be limited by the sluggish pork cutout market. Pork values were 11 cents lower yesterday and only 32.38 loads changed hands. Futures have been supported this week by expectations retailers would soon begin their grilling features, but so far the pork market hasn’t reflected that wish.
