Drought-like conditions push corn prices higher

Corn futures are trading 10 to 11 cents higher early morning. Corn prices continue to see support from drought like weather conditions across the U.S. Midwest. Temperatures are forecasted to reach triple digits into the weekend with no indication of rain relief. Weekly export sales and shipments are expected to be bearish for corn.

Soybean futures are trading 1/2 to 3 cents higher early morning. Soybean futures trading are slightly higher after losing momentum in the overnight session. There’s not much fresh news concerning the market. Overall, the market remains bullish and currently prices are pushed up and down depending on weather forecasts. Weather forecasts across the Midwest remain hot and dry.

Wheat futures are trading mixed but mostly lower early morning. The market is seeing much volatility. Prices are bouncing up and down as weather worries threaten domestic row crops and global wheat stocks. Prices are being pressured by an appreciating dollar index and good wheat yields coming off of harvest in the U.S. Plains. However, look for prices to see support from potentially bullish export sales and shipments today.

Cattle futures are called to open higher this morning. The market is expected to open the session higher on spillover buying from yesterday’s gains. Although beef prices are firming the market is expected to see pressure from uncertainty in the cash market. Trade is currently undeveloped but is anticipated to be steady.

Lean hog futures are called to open mixed this morning. The market is anticipated to open uneven. Prices are expected to be supported on spillover buying from yesterday’s price rally and futures discount to cash. On the other hand, prices are expected to be met with resistance on position squaring ahead of tomorrow’s Quarterly Hogs and Pigs report.

Cotton futures are trading higher this morning. Prices are up on weather worries. Adjusted weather forecasts have now included the Mid-South and Delta production regions in their forecasts for hot conditions. Continued drought-like conditions are expected to add more stress to the cotton crop.

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