Corn futures are trading 3 cents higher early morning. Corn prices eased overnight on profit taking after trading limit up on Monday. Yesterday’s crop progress report was bullish for prices. The report indicated a 7 percentage point decline in the corn condition rating. Look for hot, dry weather forecasts across the Midwest to support prices as well.
Soybean futures are trading 2 to 7 cents lower early morning. Soybeans prices saw sharp declines overnight despite bullish fundamentals. Noncommercial selling pressured prices over night as traders suspect the market to be in an overbought position. Dry weather forecasts, firm demand, and tight supplies will lend support to the market, limiting losses.
Wheat futures are trading mixed early morning. The market is currently trading uneven after an impressive rally on Monday. Prices were supported by soaring corn futures and global wheat production worries. Currently prices are lower as corn futures ease and the market pulls back. Global wheat reductions will lend support to prices.
Cattle futures are called to open mixed this morning. The market is set to open uneven on spillover pressure from the feeder cattle market and uncertainty in the cash market. Beef packer margins are favorable and preliminary asking prices are around $119 in the South and $190 plus in the North. Cash traded is expected to pick up later in the week with prices called steady to lower.
Lean hog futures are called to open higher this morning. Hog futures are expected to open higher on short covering and cash market premiums. The market will see additional support from firm demand and higher pork carcass values. Trade in the cash market is anticipated to be steady to lower.
Cotton futures are trading lower early morning. The market declined despite bullish crop progress results. USDA lowered cotton’s good to excellent condition rating 3 percentage points in yesterday’s report. The July contract is lower, as is expected, as it enters its delivery period. October and December posted moderate rallies yesterday only to give much of it back overnight.