Corn futures are called 1 cent lower on the open. Overnight trade at 6:30 am CDT was 3/4 to 1 cent lower. Favorable crop weather this week should help hold corn condition ratings strong or even improve them slightly. Warm weather and more chances of rain are aiding crop development. Strong export demand will help limit losses as commitments are running ahead of the pace needed to reach USDA’s export forecast. Outside markets were mixed overnight, but could influence trade.
Soybean futures are called steady to 1 cent higher. Overnight trade at 6:30 am CDT was steady to 1 1/4 cents higher. The market rallied overnight although gains were small. Rainfall has slowed the tail end of soybean planting in some areas. Outside markets could provide some direction. The dollar was down slightly overnight, which would be supportive. Sluggish export demand is a bearish factor, although for the year export sales and shipments are running ahead of pace to reach USDA’s export forecast.
Wheat futures are called narrowly mixed this morning. Overnight trade at 6:30 am CDT was 1 to 1 1/2 cents lower at the CBOT, 1/4 higher to 1/2 lower at the KCBT and 1/4 to 1 3/4 cents higher at the MGE. The MGE was higher overnight amid concern about lower protein levels in HRW wheat following recent heavy rains and on ideas of lower spring wheat acreage in Canadian as planting has been prevented by rainfall. Light commercial hedge pressure is expected for winter wheat as forecasts call for a drier weather pattern over the next week to ten days in the southern Plains.
Cattle futures are called steady to mixed as traders gear up for the Cattle on Feed report due out this afternoon. Cash trade so far this week has been moderate at mostly $91, down $1-$2 on a live basis compared to last week. Trade expectations for the COF report are for May placements to be up 22%, May marketings down 3% and cattle on feed as of June 1 up 1%.
Lean hog futures are called higher on the open. A short-covering rally is expected following the strong gains in the cash market on Thursday and the $1.44 jump in pork cutouts. Tight supplies of market ready hogs and the improved pork prices should help keep the cash market steady to firm.