Corn futures are trading 1/4 cents lower this morning. Although corn futures remain below unchanged, prices have improved during the overnight session on spillover support in the wheat market. Futures are expected to remain under pressure after USDA reported that corn harvest is moving at an exceptionally rapid pace. Twenty-six percent of U.S. corn is now harvested.
Soybean futures are trading 23 to 25 cents lower this morning. After a tumultuous day of trade on Monday, soybean futures are again experiencing strong losses. Soybean futures closed limit down on yesterday and opened the globex overnight session under pressure on better than expected crop yields, indicated in the weekly crop progress report. Improved weather conditions for the Brazilian soybean crop is another negative factor plaguing the market.
Wheat futures are trading 2 to 4 cents higher this morning. Wheat futures across all three exchanges are higher this morning despite weakness in the other grain markets. Lack of fresh news and the continued sell offs in the soybean market could potentially pull prices lower. The strength in the dollar index is also a negative factor prices.
Live cattle futures are called to open higher this morning. Futures are anticipated to open the pit, supported by surging boxed beef prices and optimism for higher cash prices. Monday’s closing boxed beef prices jumped over $1.50 for both choice and select cuts. Concerning the cash trade, movement is not expected until the latter half of the week but preliminary prices are called steady to $2 higher.
Lean hog futures are called to open lower this morning. Futures are expected to open under slight pressure from unrelenting poor fundamentals. Hog slaughter continues to rise but at a decreasing rate while cash prices continue to decline. Follow through selling is expected to weigh on futures as well.
Cotton futures are trading higher this morning. Cotton futures are higher on news that China plans to discontinue import quotas on cotton for the 2012 calendar year. Chinese officials are reported as saying that these measures are taken to help “stabilize domestic cotton prices.”