Corn futures are trading slightly higher this morning. Corn futures are continuing to see support from last week’s bullish stocks report. USDA pegged corn ending stocks for the 2011/12 calendar year substantially lower than expectations. However, spillover pressure from the other grains markets and harvest pressure are limiting gains.
Soybean futures are trading 12 to 13 cents lower this morning. Soybean futures tumbled during the overnight session giving back some of last week’s gains. The market is trading defensively after Friday’s quarterly stocks report proved to be quite bearish for the prices. Ending stocks were above the September WASDE projection and on the higher end of pre report estimates.
Wheat futures are trading 7 to 10 cents lower this morning. Wheat futures are following the soy market lower this morning on technical selling. The market is also experiencing profit taking after such an impressive rally on Friday. Currently, the dollar index is trading lower and could potentially spark buying interest in U.S. wheat.
Live cattle futures are called to open lower this morning. Prices are expected to open pit trade under pressure on soft fundamentals and poor wholesale beef prices. Friday’s closing wholesale beef prices collapsed with choice down $3.06 at $188.98 while select closed $2.95 cents lower at $177.85. Nonetheless, cash cattle trade is expected to rebound this week, with calls for steady to higher cash trade.
Lean hog futures are called to open mixed this morning. The market is expected to open uneven this morning as trade react to Friday’s quarterly hogs and pigs report. The report forecast total inventory at 67.50 million head, slightly higher than the previous year. The breeding herd inventory was forecast at 5.79 million head, down 18 thousand head from the previous year. However, deferred contracts are expected to be supported by the surge in corn prices.
Cotton futures are trading higher this morning. Cotton futures are up during early morning trade on short covering after closing the third quarter lower. Prices are expected to be pressured as cotton harvest advances. Due to lack of supportive fundamentals, cotton futures could be in for a day of choppy trading.