Corn futures have bounced on either side of unchanged this morning, currently favoring a firmer tone.
- Corn remains choppy as traders await fresh data with which they can evaluate how much high prices have trimmed demand.
- USDA lowered its corn condition ratings again, but the lackluster price response signals the small crop is largely factored into prices (for now).
- The Monitoring Agricultural Resources body cut its European Union corn yield forecast from 6.73 metric tons (MT) per hectare to 6.28 MT per hectare.
- A Farm Futures survey projects a 4% decline in U.S. corn plantings in 2013 to 93.1 million acres due to crop rotation.
Soybean futures have firmed to post gains ranging from roughly 8 to 11 cents.
- Early pressure on soybeans led to “bargain” buying by both traders and importers.
- Taiwan’s Breakfast Soybean Procurement Association purchased 58,000 MT of U.S. beans for November delivery along with 120,000 MT of Brazilian soybeans for 2013 delivery this morning.
- USDA also announced that China bought 110,000 metric tons (MT) of soybeans for 2012-13 this morning.
- The weather is a mixed bag for soybeans. Heat and dryness over the near-term will stress the crop, but rains associated with Hurricane Isaac will benefit filling beans later this week.
- Farm Futures survey results signal farmers will increase soybean planted acreage by 1.2% from 2012 to 78.1 million acres in 2013.
Wheat futures have improved to mostly firmer trade at all three locations.
- A weaker U.S. dollar index along with choppy trade in the corn market has encouraged some light short-covering in wheat futures.
- Indications El Nino is building is also supportive as it points to dryness in key Australian wheat production areas.
- News UkrAgroConsult cut its Ukraine grain crop forecast by 1.49 million metric tons (MMT) to 42.38 MMT brings Black Sea production concerns back into focus.
Live cattle futures are posting slight gains in all but the December contract, which is slightly lower. Feeder cattle futures are slightly to moderately higher.
- While beef demand is slowing seasonally, traders are hesitant to add short positions as cattle supplies are expected to tighten through year-end.
- Choice and Select cuts rebounded $1.24 and 48 cents, respectively, this morning, though movement was an unimpressive 66 loads.
- Tighter showlist estimates this week also improve cash cattle trade prospects. Last week, sales took place at mostly $120 to $121.
- Choppy action in the corn market has encouraged short-covering in feeder cattle futures.
October lean hogs are slightly firmer while deferred months are mostly lower.
- The front-month contract is enjoying light short-covering thanks to the $11-plus discount it holds to the cash hog index.
- But the rest of the market is under pressure as supplies are building seasonally and demand is beginning to lag supplies. As a result, cash hog bids are steady to lower again today.
- This can be seen in softer pork values of late. Pork movement did pick up to 24.75 loads this morning, however.
