Corn futures are called 1 to 2 cents higher. Overnight trade at 6:30 am CDT was 1 1/4 to 2 1/4 cents higher. Recently strong export demand has provided support as traders look for another strong weekly export sales report this morning. Reports that China may have bought up to 15 cargoes of U.S. corn will be supportive, although that won’t show up in the weekly report. Gains will be limited by rain is moving across the Midwest, which is generally bearish given the strong pace of planting so far this spring.
Soybean futures are called 1 to 2 cents lower. Overnight trade at 6:30 am CDT was 1 1/2 to 2 1/2 cents lower. Export demand has slowed recently as demand shifts to South America and that is expected to be confirmed in the weekly export sales report this morning. But losses could be limited by spillover strength from corn and rainfall in the Midwest which will likely slow soybean planting progress.
Wheat futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 3/4 to 1 1/2 cents lower at the CBOT, steady to 1/4 cent lower at the KCBT and unchanged at the MGE. The market remains vulnerable to short-covering rallies, but futures are expected to drift mostly lower this morning. Fundamentals remain generally bearish and the weekly export sales report is expected to show sluggish demand for U.S. wheat. Further strength in the dollar overnight will help make U.S. wheat less competitive on the global export market.
Cattle futures are called steady to mixed. Cash trade was firm with last week at $100 in the southern Plains. However, that was below trade expectations. Boxed beef prices eased on Wednesday with choice cutouts down 35 cents. There is concern that beef prices will decline once wholesale orders for Memorial Day are completed. However, some support could come from short-covering following the losses yesterday.
Lean hog futures are called higher on the open. Pork prices have turned higher again this week and were up 59 cents on Wednesday. Packer margins have improved and cash trade has been firm as well. Ideas of tightening supplies of market ready hogs are bullish for the cash market. However, there is also concern that demand will not be able to hold up once wholesale orders for Memorial weekend are complete.