Grains Choppy Overnight, Watching Weather and Export Sales

Corn: Mixed. September through July futures are marginally to cent higher, while deferred futures are marginally to 2 cents lower. Following yesterday’s gains, futures stabilized overnight as traders wait to see if remnants of Hurricane Isaac wreck havoc with Midwestern corn fields. It’s too late for a saving rain for the corn crop in the Midwest, as winds at this time would increase harvest-related losses. This morning’s weekly export sales report will also set the tone for early trade. Soybeans: Mixed. September through March futures are 2 to 3 cents lower, with the rest of the market narrowly mixed. Futures saw sharp pressure in early overnight trade, but have now stabilized. Traders will be watching this morning’s weekly export sales report for signs of price rationing, but have been absent so far. China continues to buy U.S. soybeans. Wheat: 2 to 3 cents lower. Wheat is mostly 2 to 3 cents lower this morning, with some scattered buying seen in deferred contracts. Futures rose sharply yesterday in anticipation Russia will announce curbs to exports soon, as well as concerns about dryness in western Australia. But wheat needs a dose of export news to keep bulls interested, as there are signs U.S. wheat is not competitively priced on the global market.

Live cattle: Mixed. Futures are expected to be supported by followthrough after yesterday’s high-range close. Light cash cattle trade was reported late yesterday at higher prices, which suggests supplies are tighter than thought earlier in the week. Choice and Select boxed beef values both declined 99 cents yesterday, but movement was a very strong 230 loads. Lean hogs: Mixed. Futures are expected to be mixed, with pressure limited by short-covering as traders work to narrow the discount nearbys hold to the cash index. Pork cutout values slipped 67 cents yesterday, but packers’ profit margins well remain in the black as they continue to lower bids due to plentiful supplies.