Corn futures remain mostly 8 to 9 cents higher.
Corn futures are benefiting from buying interest on ideas a sharply lower greenback, thanks to QE3, may encourage end users to cover their near-term needs.
But this is countered by news Argentina will increase its 2011-12 corn exports by 2.75 million metric tons (MMT) to 16.45 MMT, which should help ease tight global supplies.
Gulf corn basis was steady this morning and at midday.
Soybean futures have backed off their highs to trade roughly 1 to 4 cents higher in the September through March contract. Deferred months are double-digit higher.
Early gains in the soybean market amid concerns about tight supplies and a sharply lower dollar enticing increased export demand has given way to some light profit-taking.
But this will be limited due to demand strength and the need for more rationing.
Also limiting gains, NOPA soybean crush in August of 124.8 million bu. fell short of expectations, though soyoil stocks of 2.168 billion lbs. were tighter than expected.
Gulf basis levels were steady to higher this morning and steady at midday. This signals strong export demand and/or tight supplies.
Wheat futures remain mostly 20-plus cents higher in Chicago and Kansas City. Minneapolis wheat is seeing lighter gains.
Traders believe weakness in the U.S. dollar index makes U.S. wheat more competitive on the global market.
Plus, recent aggressive exports from the Black Sea region indicate a slowdown will likely occur by November as severe weather has depleted the region’s crop.
Dry conditions in Australia add to ideas global wheat stocks are tightening.
Plus, dryness in the U.S. Southern Plains is worrisome with winter wheat planting underway.
Live cattle futures remain mixed at midday with most contracts favoring the downside. Feeder cattle futures have softened slightly to post moderate losses in most contracts.
Traders are booking profits ahead of the weekend to remove some of the premium futures hold to this week’s firmer cash cattle trade.
Plus recent mixed boxed beef prices have traders concerned a pullback may lie ahead.
But boxed beef demand this morning was solid. Choice cuts rose 4 cents and Select cuts firmed 84 cents. This encouraged solid movement of 101 loads.
But any declines in futures or beef will be limited by tightening supplies.
Feeder cattle futures softened as the grain markets extended early gains.
Lean hog futures remain slightly higher in the October contract and moderately to sharply higher in deferred months.
Lean hog futures are benefiting from short-covering thanks to a mostly steady cash hog market and a slight increase in the pork cutout market yesterday, which bulls hope signals these markets are working on a near-term low.
But the supply glut will likely continue to keep futures near current lower levels if not even lower prices as hog weight gain will increase as temps cool and grain prices have shown no sign of retreating.
Gains for October lean hogs are being limited by the more than $5 premium they hold to the cash hog index.
