Corn futures are trading 21 to 26 cents higher early morning. Corn futures recouped Friday’s losses, increasing 3 percent, on continued weather worries across the Midwest. Traders and analysts consider damage to the crop irreversible, sparking rounds of commercial and noncommercial buying. USDA is set to release crop condition ratings today and the trade is anticipating the corn condition rating to decline for the third consecutive week.
Soybean futures are trading 34 to 37 cents higher early morning. Persistent drought conditions across the Midwest pushed soybean futures higher overnight, as traders believe the excessive heat over the last week damaged the crop further. Traders are also concerned that reductions to new crop yield estimates will place global supply and demand in jeopardy. USDA is set to release its crop progress report today, and the trade is expecting to see yet another decline in the soybean good/excellent condition rating.
Wheat futures are trading 13 to 22 cents higher early morning. Wheat futures are being propped up by higher corn prices. Since wheat is an alternative input for animal feed, wheat futures tend to follow the lead of corn prices. When corn prices are high, the demand for wheat increases, thus pushing prices higher.
Cattle futures are called to open mixed this morning. Higher cash prices and firm export demand should support cattle futures at the opening of pit trade. Cash trade finally picked up late Friday, with live sales reported as $1 higher. On the other hand, prices may see some push back as lower box beef prices weigh on the market.
Lean hog futures are called to open mixed this morning. Hog futures are expected to open uneven due to the struggling pork cutout value. The pork cutout value was under pressure most of last week, falling over $5 week over week. Prices should see support from nearby cash premiums to futures prices.