Corn futures are trading 2 cents higher early morning. Corn futures are trading slightly higher but mostly sideways between $8.00 and $8.11. Prices remain moderately lower than last week’s record highs but still supported by bullish fundamentals. Look for the lower dollar index and spillover support from the soybean market to support corn futures today.
Soybean futures are trading 13 to 14 cents higher early morning. Nearby November contract hit another record high of $17.60 during overnight trade on grim production estimates. The ProFarmer tour wrapped up on Friday and analysts estimated the 2012/13 soybean crop at 2.60 million bushels, lower than the current USDA estimates of 2.692 million bushels.
Wheat futures are trading mixed early morning. Wheat futures are trading mostly higher with slight pressure developing in Chicago wheat. The wheat market is not fundamentally secure as the corn and soybean markets, making it more at risk to speculative sell offs, especially if corn and soybeans turn lower during today’s session. However, the lower dollar index may renew buying interest for U.S. wheat.
Live cattle futures are called to open lower this morning. Prices are expected to open pit trade on the defensive pressured by tumbling wholesale beef prices and demand. Friday’s wholesale beef prices were reported $1.69 and $1.40 lower for choice and select cuts respectively. Uncertainty in cash market will also weigh on prices.
Lean hog futures are called to open lower this morning. Prices are expected to open under pressure on short term bearish fundamentals. Large hog supplies will continue to weigh on futures along with lower cash prices. Hog slaughter is steadily increasing with last week’s slaughter estimated at 2.2 million head, the largest on record for 2012 thus far.
Cotton futures are trading mixed early morning. Cotton futures are trading in a random pattern of unchanged to mostly higher across the board. Prices are supported as news circulates that China’s 2012 cotton output is estimated at 6.97 million tonnes, 20,000 tonnes lower than its June estimate.