Corn futures are 2 to 5 cents higher on spillover from soybeans.
- 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.
Soybean futures are 10 to 18 cents higher on concerns about tight global stocks.
- Meanwhile, soybean futures have posted contract highs this week as traders respond to disappointing Crop Tour results which confirm small crops get smaller.
- Gulf soybean basis is 7 to 8 cents lower for immediate shipment, which signals demand has softened a bit.
Wheat futures are mostly 6 to 9 cents higher at all three exchanges on spillover from neighboring pits.
- Wheat is seeing spillover from the corn market this morning, but upside potential so far has been limited by strength in the U.S. 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 expected to be mixed this morning as traders even positions.
- Cash cattle trade began in the Southern Plains yesterday at steady prices with last week. August live cattle are trading in line with the $120 to $121 trade, which should limit price moves to end-of-the-week position squaring.
- Strength in the U.S. dollar index, however, signals a “risk-off” day of trade is ahead. Investors remain uncertain over whether the U.S. Federal Reserve will take steps to stimulate the economy amid rising concerns about global growth.
Lean hog futures are called to open mixed based on light short-covering after sharp losses this week.
- Traders’ attitudes have turned increasingly bearish this week, as traders have extended the discount nearby contracts hold to the cash index given the seasonal increase in supply and stepped up herd liquidation.
- But upside potential will be limited to short-covering as packers have no urgency to attract hogs with higher bids. The cash hog market is called steady to lower due to plentiful supplies.
