Corn futures are trading 9 to 10 cents higher this morning. Corn futures were able to rebound from Thursday’s sharp losses in overnight trade. Dry, weather forecasts across the Midwest over the next week and expectations of another decline in new crop condition ratings are bullish for prices.
Soybean futures are trading 12 to 16 cents higher this morning. Soybean prices tumbled yesterday’s losses on global economic uncertainty and weakness in outside markets. The market is being underpinned by strongly bullish supply/demand fundamentals and unfavorable weather forecasts across the Midwest.
Wheat futures are trading 9 to 13 cents higher this morning. Stabilizing outside markets and dry weather conditions in Russia and China are supporting prices. Firm demand is also helping to boost futures prices. Traders are keeping a close eye on global wheat production. So far over the last two weeks Russia, Australia, and China have lower their wheat production estimates. It is expected that USDA will lower its wheat production outlook in next month’s WASDE report.
Cattle futures are called to open lower this morning. Cattle futures are called lower ahead of today’s Cattle on Feed and Cold Storage reports. The Cattle on Feed report is expected to show May placements 13 percent higher, May marketings up 5%, and cattle on feed 1 percent higher than the previous year. Cash trade is expected to pick up significantly today, with prices called steady to $1 lower.
Lean Hogs are called to open mixed this morning. The market is expected to open under pressure ahead of today’s Cold Storage report and profit taking. Fundamentally the market is sound with firm demand and tightening supplies. The pork cutout value is up and cash prices remain steady. The trade is anticipating steady to 50 cents higher cash prices.
Cotton futures are trading mixed this morning. The market is showing signs of improvement after huge losses over the past two days. The July contract continues to trade lower on investor liquidation and economic slowdown in China, while the deferreds are trading higher on drought concerns in western Texas and southwestern Oklahoma.