Corn futures are trading 3 cents higher this morning. Corn futures are sustaining gains from the overnight session in light trade. Expectations for another round of reductions to 2012/13 corn production output and yields are supporting prices. Although weekly inspections are anticipated to be neutral to bearish, the trade will focus more on Wednesday’s supply/demand report.
Soybean futures are trading 2 cents higher this morning. Soybean futures did not fare as well and the corn and wheat futures during the overnight session. Although prices are slightly higher as of this writing, overnight futures were off by as much as 20 cents. Current prices are underpinned by bullish fundamentals and spillover support from the corn and wheat markets.
Wheat futures are trading mixed but mostly higher. Wheat futures are trading randomly mixed across all exchanges this morning. Early morning prices are being supported by strength in the corn market and global supply worries, especially due poor production in the Black Sea region. The trade is anticipating a decline in 2012/13 carryout in this week’s supply/demand report.
Live cattle futures are called to open higher this morning. Cattle futures are expected to open higher supported by gains in the cash market. Prices were reported $1-$2 higher in Kansas and $2 -$3 higher in the North. The surge in the wholesale beef market seems to have run out of steam with both choice and select prices lower.
Lean hog futures are called to open lower this morning. Worsening market fundamentals are expected to pressure hog futures at the opening of pit trade. Steadily declining cash prices and sluggish demand continue to plague the market, prohibiting prices from stabilizing.
Cotton futures are trading mostly lower this morning. Cotton futures are slightly lower this morning as the trade prepares for this week’s supply/demand estimates where the trade expects USDA to lower both yield and acreage. However, overall weak fundamentals are limiting price advances.