Corn futures are trading lower this morning. Corn futures dipped lower during the overnight session, following the wheat and soybean markets. Weakness in the outside markets (macro-economic factors) also pressured agricultural commodities overnight. USDA’s crop progress report showed corn harvest 87 percent complete, slightly lower than expectations. December corn is trading 5 cents lower.
Soybean futures are trading lower this morning. A combination of profit taking and macro-economic pressures are pulling soybean futures lower at this hour. Traders are now focusing their attention on soybean production in Brazil. The Brazilian crop is expected to be a record large crop this year with supplies hitting the markets as early as March 2013. November soybeans are trading 8 cents lower.
Wheat futures are trading lower 4 to 8 cents lower this morning. Wheat futures are lower this morning despite concerns or dwindling supplies from Ukraine, Russia, and Argentina. Dryness remains an issue in the US Plains and should limit downside movement, especially in the Kansas City market. The market is also being pressured by weak export demand and gains in the dollar index.
Live cattle futures are called to open higher this morning. Cattle futures are expected to open moderately higher on sharp increases in boxed beef prices and spillover support from Friday’s bullish cattle on feed report. Choice beef cuts jumped $1.67 while select increased $1.08. Cash trade optimism is expected to support futures as well. Cash trade is anticipated to be steady to $2 higher.
Lean hog futures are called to open lower this morning. Yesterday’s cold storage report was particularly bearish for the hog/pork market. The report showed total pork stocks at a record high of 630 million pounds. Frozen pork bellies were also reported higher than the previous year at 16.8 million pounds. A lower pork carcass value coupled with expectations for lower cash prices should keep futures trading defensively throughout the session.
Cotton futures are trading lower this morning. Cotton futures are seeing sharp losses this morning as traders bank profits and the dollar index moves higher. Cotton quality issues will remain a concern as cotton harvest progresses; however outside market pressures are offsetting any gains in the market.