Corn futures prices are expected to open 2 to 8 cents higher on Tuesday. Corn prices traded higher overnight despite more pressure from outside markets. The stock market was lower on Monday and Dow Jones futures prices declined further in overnight action. The uncertainty in Europe depressed the value of the euro and the dollar strengthened. On the fundamental side, growers made good progress planting corn last week. Seventy-one percent of the crop was planted as of Sunday 24 points above the five-year average. The biggest gains in corn prices were in nearby contracts, with new crop prices up only slightly.
Soybean futures are called to open 3/4 to 2 cents higher on Tuesday. Overnight trade at was 3/4 to 2 1/4 cents higher. Monday’s crop progress report showed 24% of the soybean crop planted, a 50 percent increase above the 2007-2011 average of 11 percent. Soybeans futures should continued to see support from export sales. Yesterday was the seventh consecutive day of export sales in excess of 100,000 metric tonnes.
Wheat futures are called to open 3 to 7 cents higher on Tuesday. Overnight trade was 5 3/4 to 7 1/2 cents higher at the CBOT, 5 1/4 to 6 1/4 cents higher at the KCBT and 3 1/2 to 5 1/4 cents higher at the MGE. Export inspections were 24.1 million bushels which was significantly more than the previous week’s inspections of 19.8 million bushels. Based on yesterday’s crop progress, 63 percent of the winter wheat crop is headed with over 63 percent rated good to excellent. Additionally, 84 percent of the spring wheat is planted with 47 percent emerged.
Cattle futures are set to open low on Tuesday. Cattle futures closed higher yesterday, reversing the morning losses. Look for prices to decline due to profit taking on yesterday’s rally in prices. Cash trade is looking to be steady this week. So far initial asking prices range from $122 to $123 in the South and $195 to $197 in the North. Boxed beef prices saw some improvement yesterday with choice up 19 cents at $190.48 while select was down $1.43 at $184.67.
Hog prices are expected to open 20 to 60 cents lower on Tuesday. There were no real positive developments in cash market fundamentals on Monday. The pork cutout fell again, and pork prices really can’t seem to get any traction. Cash hog prices were also down on Monday. Cash prices are down to $75.55,, down $2.40 over the past week. Developments in outside markets are also negative for hog futures, with the stock market down and the dollar up. The hog market is oversold, but traders need a reason to close out their short positions – and so far they haven’t seen one.
Cotton prices are expected to open 30 to 60 points higher Tuesday. Cotton prices were higher overnight. But the July contract has been moving steadily lower since early February and closed at its lowest level so far this year on Monday. USDA reported that 36 percent of the 2012 crop was planted as of Sunday, up 10 points from the previous week and 8 points above the five-year average. Planting progress in the Delta is about 20 points above the average pace. Rain is forecast for key cotton growing areas in Texas.