Grains rebound overnight
Corn futures are trading higher this morning. Corn futures are rebounding after a sluggish day of trade on Monday. Again futures are expected to trade more volatile as the trade awaits the release of the October WASE estimates. Pre report trade estimates peg the average production of the 2012 corn crop at 10.601 billion bushels, 126 million bushels below the September estimate.
Soybeans futures are trading higher this morning. Soybean futures are posting firm gains early morning on short covering and bargain buying. Along with the corn futures, soybean futures traded under pressure most of the previous trading session. Traders are moving with caution as the release of the October WASDE approaches. Pre report trade estimates forecast soybean production at 2.759 billion bushels with an average yield of 37.006.
Wheat futures are trading higher this morning. Wheat futures are trading higher for the second consecutive day on global supply worries. Due to poor weather conditions, production output in Australia and Russia is expected to decline significantly, as a result increasing demand for U.S. wheat. Australian wheat production is projected to decline by more than one million tonnes while Russian output is only expected to reach 70 million tonnes.
Live Cattle futures are called to open higher. After a strong performance in the previous session, cattle futures are poised to open higher on follow through buying and the rebound in wholesale beef prices. Both choice and select cuts increased over 50 cents, which should attract buying interest in the complex. Cash trade has not developed yet but is called steady versus last week’s trade.
Lean hog futures are called to open mixed this morning. Although the market managed close higher on Monday, futures are expected to open under slight pressure. Cash is anticipated to slow down with bids steady to lower due to ample pork supply at the moment. However, improving fundamentals should limit losses.
Cotton futures are trading higher this morning. Cotton futures are trading higher at this hour on news that Chinese cotton output is expected to be about 4.2% lower than the previous year’s output. However, the higher dollar index and pre positioning ahead of USDA’s supply/demand estimates could potentially limit gains.
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