Overnight highlights. Following are highlights of overnight trade (as of 6:45 a.m. CT) and opening livestock calls:
Corn: 3 to 4 cents higher. Focus in the market today will be on evening positions ahead of tomorrow morning’s USDA Crop Production and Supply & Demand Reports. Traders expect USDA to lower the size of the crop again, but cuts to demand are also anticipated. Lacking any other fresh news and given the record-fast start to harvest, another choppy day of trade is likely ahead. Soybeans: Marginally to 3 cents lower. Futures are mostly weaker this morning, although has seen two-sided trade as traders even positions ahead of tomorrow’s key USDA reports. With little fresh news for the market to digest and yesterday’s condition report showing slight improvement in the crop, there aren’t a lot of willing buyers this morning. Key, however, will be traders view weakness as a buying opportunity at the start of open-outcry trade. Wheat: Mixed. Wheat is favoring a firmer tone in mixed trade, although there’s little fresh news for the market to digest. ABARES lowered its Australian wheat crop estimate, although that has largely been known by the market given less-than-ideal weather there. Look for wheat to remain in a follower’s role to corn.
Live cattle: Mixed. Futures are expected to see a mixed start, which follows yesterday’s performance in the boxed beef market. Choice values rose 59 cents yesterday and Select was down $1.02 on strong movement of 151 loads. This week’s cattle showlist is smaller than last week, which gives feedlots more bargaining power and raises optimism for steady to firmer cash cattle trade this week. Lean hogs: Steady to lower. Futures are expected to be pressured by plentiful supplies, but some short-covering is possible given the discount nearbys hold to the cash index. Packers are working with the most profitable margins they have had for months, which makes them willing to keep slaughter running near capacity. Pork cutout values were 2 cents lower yesterday and cash bids are expected to be steady to mostly $1 lower again today.
