Corn futures are trading 6 cents higher early morning. Corn futures picked up steam during the overnight session, recouping some of yesterday’s losses. Prices are currently supported by bullish supply fundamentals and a slightly bullish crop progress report. Crop progress reports the corn good/excellent ratio steady at 23 percent but an increase in one percentage point for corn rated poor/very poor.
Soybean futures are trading 8 to 9 cents higher early morning. Long term supply/demand fundamentals pulled prices higher as non commercial long liquidation eased overnight. Recent weather trends have been beneficial for the new crop as indicated by a one percentage point increase in the crops good/excellent ratio, however overall conditions still remain poor.
Wheat futures are trading 7 to 8 cents higher early morning. Wheat futures are currently following corn and soybean futures higher. Price support can also be attributed to the lower dollar index and declining spring wheat condition ratings. USDA rating spring wheat 2 percentage points lower at 61 percent good/excellent versus 63 percent a week ago.
Live cattle futures are called to open higher this morning. The markets are anticipated to open sharply higher on follow through buying and rising beef prices. Wholes beef prices continue soar, closing Monday with prices up near $2 per cwt for both choice and select cuts. Renewed buying interest in the corn market will also be prices friendly for deferred contracts.
Lean hogs futures are called to open higher this morning. Hog futures are anticipated to open pit trade higher, supported by spillover strength in the cattle market and follow through buying. However, prices may be met with some resistance as cash trade remains lackluster and wholesale pork prices struggle. But, rising corn prices are expected support deferred contracts.
Cotton futures are trading higher early morning. The market is trading slightly higher this morning on market short covering and continued sell offs in the dollar index. Also, upside momentum in the grain complex helped to spark renewed buying interest in the cotton market.