Corn futures are trading are 7 to 8 cents higher early morning. Corn futures carried gains into the overnight session following a two day sell off. At the moment, prices are buoyed as traders square positions ahead of Friday’s USDA WASDE report. Corn production output and yields are expected to see sharp declines due to significant damage from drought. The average of analysts’ estimates for corn yield is 127.3 bushels per acre, a moderate decline from the June estimate.
Soybean futures are trading 7 to 8 cents higher early morning. Soybean futures pulled back slightly during the overnight session but firmed up as the market prepares for USDA’s supply/demand report on Friday. Prices are also supported by weather worries and tightening global supply of the oilseed. Although this week’s weather has been wetter, there remains concern over further yield damage if August rainfall drops below average levels.
Wheat futures are trading 5 to 7 cents higher early morning. Market support is tied to global wheat reductions and news that Russia has not ruled out plans to implement protective export tariffs in 2013. Analysts’ estimate wheat production in Black Sea Region to decline approximately 30 percent from the previous year, which will lower global output as well as continue to fuel fears for a food price scare.
Live cattle futures are called to open higher this morning. After a hot day of trading in the pit, cattle futures are anticipated to start Thursday higher as well on follow through buying and cash enthusiasm. Renewed strength in whole beef prices should lend support to prices as well. End of the day boxed beef prices jumped over $1.40 for both choice and select cuts. Traders will also continue to watch price movements in the corn markets as higher prices should lend support to deferred contracts.
Lean hog futures are called to open mixed this morning. Prices are expected to open soft on cash market uncertainty. Trade in the cash market is called steady at best but there remains the possibility prices could fall below expectations. On the plus side, rising corn prices should boost deferred contracts while weekend hog slaughter is on rise and expected to total over 40,000 head.
Cotton futures are trading mixed early morning. Cotton prices have pulled back slightly after posting moderate gains on Thursday. Position squaring ahead of tomorrow’s supply/demand report and slight profit taking are causing prices to trade both sides of the market.