Corn futures are trading 3 to 4 cents higher early morning. Corn futures rebounded overnight as long term bullish fundamentals support prices. Upside momentum in the soybean market also helped to pull corn prices higher. However, due to record high prices, the market is becoming more vulnerable to rounds non commercial liquidation.
Soybean futures are trading 15 cents higher early morning. Increased demand for soy products helped to pull prices higher late yesterday and into the overnight session. Export sales and shipments were bullish for prices and helped to shore up market. Export sales of 202,000 tonnes of soybeans were sold to an unknown destination, 165,000 tonnes of soybean and 55,000 tonnes of soybean oil were sold to China for delivery during the 2012/13 marketing year on yesterday.
Wheat futures are trading 4 to 8 cents higher early morning. Although prices are currently trading on the upside, traders expect wheat futures to follow the direction of the other grain crops today. Global wheat production is on the decline which could spark renewed buying interest for U.S. wheat pushing prices upward. However, today’s strength in the dollar index may limit market advances.
Live cattle futures are called to open mixed this morning. Prices are expected to open on both sides of the market today, supported by steady cash prices but pressured by late week profit taking and waning boxed beef prices. The majority of the cash trade action transpired yesterday, with expectations for light trade today if at all.
Lean hog futures are called to open lower this morning. Prices are expected to open under pressure on short term bearish fundamentals. Large hog supplies will continue to weigh on futures along with plummeting pork cutout values and lower cash prices. Hog slaughter is steadily increasing with packers planning a 150,000+ slaughter this weekend, taking advantage of the recent price setbacks in the market.
Cotton futures are trading lower early morning. Prices are pressured early morning by the higher dollar index and disappointing economic news out of China. Analysts at the Cotton Outlook estimate global cotton market surplus at 3 million tonnes due to poor demand and recent setbacks in the Chinese economy.