Corn futures are called steady to 3 cents higher. USDA’s Supply/Demand report was slightly negative for corn, as ending stocks were left unchanged at 801 million bushels, whereas the average of trade estimates estimated stocks at 721 million bushels to reflect cuts in the March Grain Stocks report. Spillover support from soybeans and wheat is expected to help lift corn prices.
Soybean futures are called 5 to 10 cents higher. USDA’s Supply/Demand report was fundamentally bullish, but fell in line with trade expectations, which softens the market impact. U.S. ending stocks are pegged at 250 million bushels, down from 275 million in the March report and just above the average trade estimate of 246 million.
Wheat futures are called 8 to 10 cents higher. USDA’s Supply/Demand report was neutral at the U.S. level as it was in line with trade expectations, but it was bullish on the world level. World ending stocks fell below the low end of trade estimates, coming in at 206.27 million tonnes whereas the trade estimates ranged from 207.00 million to 209.66 million. World wheat feed use was increased significantly, up 6.83 million tonnes.
Cattle futures are expected to open steady to 40 cents higher. Feeder cattle and live cattle contracts were higher over night. A key factor in the improvement in futures prices was a bounce in boxed beef prices on Monday. Processing margins are still very poor, but at least beef prices moved in the right direction. The number of fed cattle available this week is a little larger than last week’s total, but traders believe the supplies have moved past the highest numbers. However, beef imports are surging with imports from Australia up 76 percent from year-earlier levels in March.
Lean hog futures are expected to open 10 to 50 cents lower. Cash hog prices and pork prices both declined on Monday dampening ideas that cash markets were turning higher. The market is still oversold, even after the general uptrend in deferred contract s over the last week and a half. Pork demand is expected to improve seasonally and consumers’ move away from hamburger and lower poultry production should help. But the market has a long ways to go before processing margins turn positive again.
Cotton futures are trading mostly higher. USDA’s Supply/Demand report was bullish on the U.S. fundamentals, bearish on the world level. U.S. exports were raised 400,000 bales to 11.4 million. Shipments have been very strong and were pointing toward higher exports. However, world ending stocks jumped 3.75 million bales due to lower domestic use and an increase in beginning stocks due to revisions to India’s unaccounted for cotton the past two years.