Corn futures are called 12 to 16 cents higher. Overnight trade at 6:45 am CT was 12 to 16 1/4 cents higher. Following the sharp decline late last week, corn futures turned higher overnight amid reports of export demand on the break. There is talk that China bought 1.6 million tonnes of new-crop and USDA announced on Friday the sale of 1.1 million tonnes sold to “unknown destinations”. There is also indication that Japan and South Korea are looking to buy U.S. corn. The market will find support from the need for weather premium due to uncertainty about the size of the crop and on the increased demand.
Soybean futures are called 13 to 15 cents higher. Overnight trade at 6:45 am CT was 13 1/2 to 15 1/4 cents higher. Spillover support from corn and the outlook for tight stocks of soybeans are bullish factors. The smaller-than-expected acreage number leaves little room for crop problems and August weather prospects remain uncertain. USDA will update crop condition ratings this afternoon. So far this season, crop ratings are running near average levels.
Wheat futures are called 20 to 25 cents higher. Overnight trade at 6:45 am CT was 23 to 24 1/2 cents higher at the CBOT, 18 1/2 to 19 3/4 cents higher at the KCBT and 20 to 20 3/4 cents higher at the MGE. Short-covering developed overnight to help push prices higher following the recent losses. Talk of improved demand on the recent price break and spillover support from corn are expected to push prices higher. Weekly export inspections will be reported this morning. Last week export inspections were on pace to reach USDA’s export projections.
Cattle futures are called steady to higher. Steady to firm cash trade last week is leading to optimism for firm trade this week. Packer demand should be solid as they will be buying for a full slaughter schedule next week. However, gains could be limited by uncertainty about beef clearance over the holiday weekend.
Lean hog futures are called steady to mixed. Cash trade is expected to be steady to lower today following the $2 decline on Friday. Traders will be watching to see how pork sales were over the holiday weekend, but pork cutouts were up 41 cents on Friday. Recent weakness in corn has been bearish for deferred contracts, but corn was trading solidly higher overnight.