Corn futures are called 25 to 30 cents higher. USDA’s Crop Production and Supply/Demand reports were supportive, but sharply higher soybean trade is expected to support corn. USDA pegged production at 12.540 billion bushels, down 124 million from last month. This was slightly more than trade expectations. Ending stocks were forecast at 827 million bushels, also slightly below the average pre-report trade estimate. Overnight trade ahead of the report was up 10 to 11 cents.
Soybean futures are called up the limit 70 cents this morning. USDA lowered their production forecast to 3.375 billion bushels, down 33 million bushels while traders were looking for a small increase. This helped push estimated ending stocks down to 185 million bushels from 265 million last month. USDA raised their export forecast by 50 million bushels this morning. Overnight trade was 18 to 20 cents higher ahead of the USDA reports.
Wheat futures are called 25 to 30 cents higher. Spillover support from corn and soybeans are expected to help push futures higher. USDA revised their wheat ending stocks number to 848, down 5 million from last month. Lower production revisions for hard red spring wheat of 11 million bushels and 4 million bushel decline in the durum production estimate more than offset higher projected imports. Support will also come from the latest crop condition ratings. USDA pegged the crop at 45% good to excellent, the smallest percentage good to excellent since 1990. Overnight trade ahead of the USDA reports was 9 to 12 1/2 cents higher at the CBOT, KCBT and MGE.
Cattle futures are expected to open steady to mixed, but could be influenced by the crop markets. Boxed beef prices were mixed on Monday with choice cutouts up 45 cents while select cuts were 78 cents lower. Cash trade has yet to develop this week, which could keep futures choppy until the cash market becomes better defined. Expected strength in corn should be supportive for deferred contracts.
Lean hog futures are called mixed this morning. Cash markets turned lower on Monday and pork cutouts were $1.24 lower. Charts look technically overbought and with the shaky cash fundamentals, futures are likely to open lower. However, the expected jump in corn prices should be supportive for deferred hog futures.
Cotton futures are sharply higher again this morning. USDA lowered its cotton crop production number to 18.42 million bales from 18.87 million last month. Ending stocks are projected to be only 2.20 million bales compared to the October estimate of 2.70 million bales. December futures are locked up the 500 points limit this morning at 151.23.