Grain complex under pressure
Corn futures are trading lower this morning. Corn futures are trading narrowly in low volume trade this morning. Spillover pressure from losses in the soy complex is adversely affecting the market as well unsupportive demand fundamentals. As reported yesterday by USDA, corn export sales totaled 142,300 tonnes, below the lower range of trade expectations. December corn in trading 1 ½ cents below unchanged.
Soybean futures are trading lower this morning. Soybean futures are adding to losses as the market absorbs news that DJ-UBS commodity index fund is planning to rebalance the percentage allotments to soybean and soybean oil commodities. Improved weather conditions in South America are also weighing on prices this morning. November soybean futures are trading 9 cents lower.
Wheat futures are trading mixed but mostly lower this morning. CBOT and KCBT wheat prices are down marginally while prices at MGE are beginning to firm. The overall drawback in the grain complex and strength in the dollar index could lead to further losses in the wheat market. Wheat futures across all three exchanges are trading off 1 ¼ cent up 1 ¼ cents up.
Live cattle futures are called to open lower this morning. Residual selling in the cattle complex and the decline in boxed beef prices are expected to pressure prices at the opening of pit trading. However, prices should see support from improving export demand and steady to higher cash prices. Weekly export sales were reported at 16,600 tonnes, 15 percent higher than the previous week.
Lean hog futures are called to open lower this morning. Hog futures are anticipated to open lower this morning on seasonal pressures and market uncertainty. Yesterday’s lower cash prices will weigh on futures as well as the decline in pork cutouts.