Corn futures are trading 29 cents higher early morning. Weekend weather across the Midwest lifted prices during the overnight session. Lack of significant rainfall and relief from excessively high temperatures are supporting the market as weather forecasts predict more stressful conditions over the next 7 days. Corn Today’s crop progress report is expected to be bullish for prices as the trade expects to see more reductions to condition ratings.
Soybean futures are trading 34 to 40 cents higher early morning. Bullish fundamentals and Midwest weather woes are pushing soybean futures near record highs early morning. Traders continue to eye conditions across the Midwest as the region experiences the worst drought in over 20 years. USDA releases crop progress conditions ratings this afternoon, and the trade is expecting to see further reductions to the soybean good to excellent condition rating.
Wheat futures are trading 19 to 30 cents higher early morning. Strength in the corn and soybean markets are pulling wheat prices higher. Prices are seeing additional support as long term fundamental outlooks are becoming more bullish due to declining wheat production in the Black Sea region and rising global supply worries.
Cattle futures are called to open lower this morning. The market is expected to open under pressure on rising grain prices and worsening drought conditions. Struggling boxed beef prices and lower cash prices are expected to weigh on the market as well. Trade in the cash market is called steady to lower.
Lean hog futures are called to open lower this morning. Much like the cattle market, the market will open under pressure as grain prices continue to increase. Lower cash prices will continue to be worrisome for the market but their effects may be countered by improved demand for pork products (bacon).
Cotton futures are trading mixed early morning. The market is trading lower mostly due to profit taking. Rains across the Mid-South and SE U.S. are also weighing on futures. Look for the higher dollar index to keep cotton prices in check, limiting any rally in market prices.