Grains dip after impressive rally
Corn futures are trading lower this morning. Profit taking after an impressive run-up in prices has corn futures trading defensively. Although prices have dipped from session highs, the market will continue to see support as ending stocks become tighter and productions numbers declined. USDA lowered domestic ending stocks to 619 million bushels while global ending stocks were lowered to 117.270 million tonnes. December corn is trading 3 cents lower.
Soybean futures are trading lower this morning. Soybeans futures tumbled overnight, giving back gains from yesterday’s market rally. Yesterday’s market rally was overdone, supported primarily by bullish momentum in the corn market. Futures are now lower as the market reacts to yesterday’s bearish production and yield estimates. November soybeans are trading 14 cents lower.
Wheat futures are trading lower this morning. The market is also following corn and soybeans lower at this hour. Yesterday’s October WASDE was neutral for wheat but futures garnered strength from large gains in the corn and soybean markets. However, USDA’s decline in global production should sparked renewed buying interest in U.S. wheat. December wheat at CBOT is trading 7 cents lower.
Live cattle futures are called to open higher this morning. Cattle futures are expected to open above unchanged this morning supported by the uptick in wholesale beef prices and cash trade optimism. Light cash trade was reported in Kansas on Thursday with prices steady to higher. Preliminary asking prices are $126 plus in the South and $195 plus in the North.
Lean hog futures are called to open higher this morning. Firm demand and follow through buying is expected to lift hog futures at the opening of pit trade. Cash prices are called steady today and futures found should find support from higher pork cutout values. The trade expects the recent run up in grain prices to continue to support deferred contracts.
Cotton futures are trading higher this morning. Cotton futures are rebounding on short covering after market prices plummeted on a particularly bearish USDA WASDE report for cotton. Domestic and global ending stocks were both increased. Global ending stocks were raised over half million bales. Production output and average yields increased while exports decreased. December cotton is trading 24 points higher.