Corn futures improved just ahead of noon to mixed trade.
- Traders continue to engage in some light profit-taking as they evaluate whether prices have risen high enough to make tight supplies last.
- Weekly export inspections of 14.458 million bu. fell short of expectations and point to some demand destruction.
- But today’s steady to firmer Gulf basis levels are in line with the trend, signaling tight supplies.
- Outside markets are a mixed bag. The dollar is hovering around unchanged while the stock market is slightly higher.
Soybean futures have reversed early gains to trade marginally to 7 cents lower in the September through the March contracts. Deferred months are enjoying slight gains.
- Early gains led to profit-taking and increased technical selling on the way down.
- Weekly soybean export inspections of 17.407 million bu. fell short of expectations and last week’s tally, but the pace of exports once again gained on year-ago.
- But soybean’s downside is limited as the market is still working to find a price that slows use enough to make supplies last.
- Plus, the forecast for hot, dry conditions will make it more difficult for beans to hold onto what yield potential they have.
- Chinese bean demand remains strong. The country’s Ministry of Commerce says it expects August soybean imports to total 5.3 million metric tons (MMT), which is up from its initial estimate of 4.37 MMT.
Wheat futures have improved to mixed trade, though nearby contracts continue to favor the downside.
- Wheat is facing light spillover pressure from the corn and soybean markets.
- Also, Egypt’s purchase of 120,000 metric tons (MT) of Russian wheat and 60,000 MT of Romanian wheat this weekend reminds the market U.S. wheat is not competitively priced.
- However, weekly wheat export inspections of 18.884 million bu. met expectations and point to still-solid demand.
- Crop concerns in the Black Sea region and Australia are beneficial to this end.
Live cattle futures remain under light pressure at midday. Feeder cattle futures are favoring the downside in mixed trade.
- Beef demand typically moderates following the Labor Day holiday. As a result, traders are engaging in some light profit-taking today.
- This morning, Choice cuts firmed 41 cents, while Select values fell 64 cents. Movement was a lackluster 67 loads. This adds to ideas the market is working on a top.
- Traders will await showlist estimates and more boxed beef action before forming cash cattle trade expectations this week. Last week, cash trade took place at mostly steady prices compared with the week prior.
- Choppy to lower action in the corn market has encouraged some light short-covering in feeder cattle futures, but traders must see proof the market has topped before they will add long positions.
Lean hog futures are enjoying slight gains in nearby contracts, while deferred months are posting slight losses amid spreading activity.
- Nearby lean hog futures are benefiting from the discount they hold to the cash hog index.
- But buying interest is limited to short-covering as near-term fundamentals are bearish. Supplies are building seasonally and Labor Day buying is complete. Recent pork price softness has signaled demand is already lagging supplies.
- Further limiting packer demand is the fact packers are buying for a holiday-shortened week. Cash hog bids are steady to as much as $2 lower today.
