Corn futures are trading higher this morning. Corn futures are trading steady with price support tied to gains in the wheat market and the positive affects a Ukrainian wheat export ban could have on the U.S. corn market. Although demand for U.S. corn remains lackluster, crop progress is expected to show corn harvest at 95 percent complete this week.
Soybeans futures are being strengthened this morning. Soybean futures are rebounding after a rough week of trade the previous week. After dropping to a three month low last week, futures are being supported by brisk export demand and some bargain buying. Today’s crop progress report is expected to show further advancement of the U.S. soybean harvest. Analysts estimate harvest to be 80 to 85 percent complete.
Wheat futures are trading higher this morning. Wheat futures are firmly higher as supply worries increase. News that the Ukraine is strongly considering export ban and continued dry weather in Australia are fueling buying support in U.S. wheat. The market is being supported by the overall strength in the grain complex along with a lower dollar index.
Live cattle futures are called to open higher this morning. Cattle futures are expected to open the pit significantly higher on last week’s bullish cattle on feed report. October 1 cattle on feed was reported down 2.6% from the previous year, which was below analysts’ expectations. The market should also be supported by last week’s strong cash market trade.
Lean hog futures are called to open higher this morning. Lean hog futures are expected to open aggressively, supported by soaring pork carcass values. Last week’s pork cutout jumped above $89 on firm demand for selective pork cuts. However, the market may be met with resistance as the trade awaits this afternoon’s cold storage report.
Cotton futures are trading mixed this morning. Cotton futures are mostly lower with the exception of the front month December contract. Generally speaking the market is trading defensively on trader profit taking. Prices soared to new highs the latter portion of last week on domestic supply worries due to high levels of micronaire, a quality issue. These quality concerns should limit downside movement.