Corn futures are trading 18 to 23 cents higher early morning. The market remains supported by hot conditions across the Midwest. New crop corn surged higher as weather forecasts remain unchanged and traders anticipate a reduction in today’s crop condition ratings for corn. New crop corn needs moisture as it enters the pollination phase, but the outlook over the next week is expected to remain hot and dry adding more heat stress to an already weakening corn crop.
Soybean futures are trading 32 to 41 cents higher early morning. Much like the corn market, soybeans are supported by hot, dry conditions across the Midwest. Dry conditions and lack of soil moisture are negatively affecting new crop corn and soybeans. Look for today’s crop progress report to be bullish for soybeans as the trade is expecting another round of reductions for soybean crop condition ratings.
Wheat futures are trading 15 to 18 cents higher early morning. Wheat futures are up on spillover buying in both the corn and soy markets. Long term outlook for the market is turning more bullish as global wheat production estimates decline. Recent reductions in Russian and Australian wheat crop estimates are expected to incite the USDA to lower world production and ending stocks in next month’s supply/demand report.
Cattle futures are anticipated to open lower this morning. The market is expected to open soft on surging corn prices and higher than expected May placements. Friday’s Cattle on Feed report showed May placement up 15 percent, which topped analysts’ expectations of a 14 percent increase. USDA’s cold storage report was also bearish for cattle showing frozen beef stocks up more than 11 percent from the previous year. Trade in the cash market is called steady to lower.
Lean hog futures are anticipated to open mixed this morning. The market is expected to open uneven after Friday’s somewhat bearish Cold Storage report. Frozen pork stocks were reported 16 percent higher than the previous year at 636 million pounds. However the market will see support from higher cash and pork cutout values. Cash trade is called steady to 50 cents higher.
Cotton futures are trading mixed this morning. The July contract continues to struggle while new crop contracts are turning higher. Today’s crop progress report is expected to be bullish for the market with lower crop condition ratings due to stressful weather in western Texas and southwestern Oklahoma.