Corn futures are 3 to 4 cents lower on profit-taking.
- Corn largely remains within the bounds of Tuesday’s price range as traders reevaluate positions given historically high prices that typically ration demand.
- Pressure is being limited by disappointing Pro Farmer Midwest Crop Tour results.
- USDA reports weekly export sales of 108,400 metric tons (MT) for 2011-12 and 217,000 MT for 2012-13, which were within expectations.
- The International Grain Council (IGC) has raised its forecast for 2012-13 global corn carryover by 5 million metric tons (MMT) to 120 MMT. But this is still down from 134 MMT last season.
Soybean futures are mostly 8 to 11 cents higher on tight supplies.
- Light followthrough buying in most contracts comes on disappointing Pro Farmer Midwest Crop Tour results and fresh demand news.
- Weekly export sales of 132,900 MT for 2011-12 and 585,800 MT for 2012-13 came in above expectations, with China the lead buyer for both marketing years -- reflecting very little price rationing amid tight global supplies.
- Also this morning, USDA announced export sales of 202,000 MT of soybeans to unknown destinations for 2012-13; 165,000 MT of soybeans to China for 2012-13; and sales of 55,000 MT of soyoil to China -- with 36,000 MT for 2011-12 and 19,000 MT for 2012-13.
Wheat futures are posting slight gains, with buying limited by weakness in the corn pit.
- Wheat futures have turned slightly higher, pulled between weakness in corn and firmer trade in soybeans.
- Weekly wheat export sales of 468,800 MT for 2012-13 and 6,000 MT for 2013-14 came within expectations.
- The IGC has lowered its forecast for 2012-13 global wheat carryover by 3 MMT to 180 MMT, which compares to 197 MMT last season.
Live cattle futures are expected to see a mixed start as traders wait on active cash trade to begin.
- Light cash cattle trade was reported in Nebraska late yesterday and slightly lower prices, but tighter showlists in Kansas and Texas could still produce steady to $1 higher cash trade, say traders.
- Beef prices were slightly lower yesterday, but movement improved to 234 loads.
- The U.S. stock market is poised for a weaker start, which could weigh on cattle futures as it raises red-meat demand concerns. Disappointing manufacturing data from China and the euro-zone is renewing global economic concerns.
Lean hog futures are called mixed, with pressure from the pork market vs. some light short-covering.
- Pork cutout values plummeted $2.98 yesterday on moderate movement of 77.63 loads. Sharp losses in the pork market this week raise concerns about supply overwhelming demand.
- Meanwhile, yesterday’s Cold Storage Report showed pork stocks below traders’ expectations, but 20% above year-ago.
- The cash hog market is called $1 to $2 lower as packers have adequate supplies.
- But pressure on futures should be limited as yesterday’s sharp decline pulled contracts into oversold territory.
