September through July corn futures are 2 to 3 cents higher, with far-deferred contracts turning mixed.
- This week’s Pro Farmer Midwest Crop Tour returned the focus to the supply side of the market, but corn has not yet moved to contract highs. While supplies are tight, focus is on demand, which his being rationed.
- Gulf corn basis is 5 cents higher for immediate shipment to reflect the tight stocks situation.
- Negative outside markets via a sharply higher U.S. dollar index are also limiting investor interest in corn this morning.
- December corn briefly traded below support at yesterday’s low of $8.12 1/4 and is now pivoting around $8.20.
Soybean futures extended gains on the start of open outcry trade, now up 12 to 21 cents.
- Disappointing pod counts from the Pro Farmer Midwest Crop Tour in Iowa and Minnesota (which traders had hoped would make up for some of the lower counts from states Toured earlier in the week), are a supportive factor this morning.
- Gulf soybean basis is 7 to 8 cents lower for immediate shipment, which signals demand has softened a bit.
- November beans remain confined within the boundaries of yesterday’s trading range, but are currently near the session high and testing contract-high resistance of $17.44 3/4.
Wheat futures weakened on the start of open outcry trade. Futures at all three exchanges are narrowly mixed.
- Wheat remains in a follower’s role, but is seeing limited buying this morning due to strength in the US dollar index.
- More indications of a smaller Russian wheat crop this week renewed talk it will curb exports, but Russian officials continue to declare there are no immediate plans of that happening.
Live cattle futures are slightly lower in reaction to steady cash cattle trade.
- Cash cattle trade is thought to be done for the week, with trade turning active in the Southern Plains yesterday at $120 to $121 trade -- steady with last week.
- Strength in the US dollar index is also contributing to light profit-taking. Investors remain uncertain over whether the US Federal Reserve will take steps to stimulate the economy amid rising concerns about global growth.
Lean hog futures are favoring a weaker tone in mixed trade.
- Most lean hog contracts are benefiting from short-covering on ideas this week’s losses are overdone. Futures have moved into technically oversold territory according to the 9-day Relative Strength Index.
- The cash hog market is mostly steady in the western Corn Belt, while bids are steady to $1 lower in the East.
