Corn futures remain choppy with most contracts favoring the downside.
Pro Farmer Midwest Crop Tour results have been disappointing for South Dakota, Ohio, Indiana and Nebraska. And it appears stops in western Iowa and Illinois today fit the trend. This is limiting profit-taking pressure on corn.
Gulf basis levels are steady to 3 cents higher at midday, signaling the need to ration supplies.
Traders will watch tomorrow’s weekly export sales report to gauge how much high prices have trimmed global corn demand.
Nearby soybean futures are double-digit lower, while deferred months are mixed.
Profit-taking after contract-high gains that brought the market into technically overbought territory yesterday remains the dominant action in soybean futures.
But bulls stand ready to buy any major dips as Pro Farmer Midwest Crop Tour results continue to reflect low pod counts and export demand remains strong.
Adding support is Stats Canada’s canola production estimate of 15.410 million metric tons (MMT). While if realized this would be a record, the estimate still fell short of pre-report expectations.
Gulf basis levels are steady to lower at midday.
Chicago and Kansas City wheat are mostly 7 to 8 cents lower, while Minneapolis wheat is seeing lighter losses.
Wheat needs spillover support from corn and fresh fundamental news to rally. Both are lacking today, leaving the market vulnerable to profit-taking.
More attention is being placed on the upcoming winter wheat planting season. Forecasts for much-needed rains in the U.S. Central and Southern Plains are adding light pressure.
This morning’s Stats Canada crop production estimate of 27.013 MMT met expectations.
Live cattle futures have improved to narrowly mixed trade. Feeder cattle futures are enjoying slight gains.
Traders in the live cattle market are largely marking time as they wait for cash cattle trade to get underway. Bids are currently at $118 while asking prices are mostly $122 to $123.
Boxed beef prices were again mixed this morning, with Choice values down 19 cents and Select cuts up 30 cents. But softer prices spurred impressive movement of 150 loads, which is just 3 loads short of yesterday’s total tally.
These signs the beef market is working on a top are countered by tighter showlist estimates this week.
Mixed action in the corn market is encouraging some light short-covering in feeder cattle futures today.
Lean hog futures have extended losses to trade sharply lower.
A $2.09 plunge in the pork cutout value yesterday is weighing heavily on lean hog futures as this raises concern demand is beginning to lag supplies.
Plus, talk that Canadian hog producers may close operations due to high feed costs are heightening concerns about similar struggles with high feed costs for U.S. producers.
Moves to 20-month lows encouraged technical selling on the way down.
Cash hog bids are steady to lower this morning as supplies continue to expand seasonally.
Today’s Cold Storage Report is expected to show pork stocks down 5.1% from month-ago to 561.8 million lbs., which would still represent record-high pork stocks for July.
