Grains trading mixed early morning
Corn futures are trading slightly higher this morning. Corn futures opened the overnight session higher only to be pulled lower by spillover weakness in the soy complex. The market is expected to trade on both sides of unchanged due to pre WASDE positioning and poor export demand.
Soybean futures are trading lower this morning. Soybean futures are being pressured by long liquidation and speculation the heavy rains in Argentina have ended and favorable weather is on the way. The market is also expected to be affected by position squaring ahead of this week’s WASDE report.
Wheat futures are trading higher this morning. Wheat futures are trading marginally higher on global supply worries. As supplies continue to tighten, traders anticipate demand for U.S. wheat increase. However, the market could turn lower if the other grain markets post moderate to heavy losses.
Live cattle futures are called to open lower this morning. Futures are expected to open defensively on unsupportive fundamentals and easing boxed beef prices. Friday’s closing boxed beef cutouts were lower for both choice (-$0.76) and select (-$0.76) cuts. Packer margins remain in the red which will likely lead to lower bids and another week of lower prices in the cash market.
Lean hog futures are called to open lower. Hog futures are also expected to open lower this morning as supply and demand fundamentals turn unfavorable for the market. Currently demand for pork products is struggling while supply remains plentiful. Cash trade is expected to start the week lower.
Cotton futures are trading mixed this morning. Cotton futures are trading mixed but mostly lower this morning. Cotton stocks are expected to be record large this year is will continue to weigh on futures prices. Look for cotton to trade volatile throughout the session as traders square positions ahead of Friday’s USDA WASDE report.