Corn futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 to 6 1/2 cents higher. The market is trading higher overnight on position evening ahead of the holiday weekend following the strong losses on Thursday. The decline in yield and production estimates this summer will be a supportive factor. Hot and dry weather in the Corn Belt this week could further drop condition ratings. Cooler temperatures are expected next week, but many areas will remain dry.
Soybean futures are called 5 to 5 3/4 cents higher. Overnight trade at 6:45 am CT was 5 3/4 to 6 1/4 cents higher. Futures were able to rebound overnight from the strong losses on Thursday. Traders will be evening positions ahead of the extended Labor Day weekend. Hot and dry weather in much of the Midwest this week is supportive as yield potential is being trimmed. Cooler temperatures are forecast for next week, but many areas will remain too dry.
Wheat futures are called 6 to 9 cents higher. Overnight trade at 6:45 am CT was 9 1/4 cents higher at the CBOT, 7 1/2 cents higher at the KCBT and 6 1/2 cents higher at the MGE. Profit-taking weighed heavily on futures yesterday, but the market was able to rebound overnight as traders gear up for the extended holiday weekend. Disappointing spring wheat yields, drought in the southern Plains and dry weather in Argentina’s wheat production areas are supportive factors. Gains will be limited by bearish global supply/demand fundamentals and sluggish export demand.
Cattle futures are called steady to mixed as traders are still waiting for the cash market to develop. Boxed beef prices have been lower this week. Choice cutouts were down another 99 cents on Thursday. Packer demand for next week is limited due to plants being closed on Monday for Labor Day. Strong export demand is a supportive factor.
Lean hog futures are called steady to lower. Pork cutouts were down another $1.13 on Thursday and national average cash prices were $2.23 lower. Cash fundamentals remain bearish. The discount of futures to cash has all but disappeared given the recent weakness in cash prices.