Most grain markets continued to advance in the Tuesday evening session ahead of the WASDE report that will be released at 11am EST today. Corn, however, did not see a boost overnight perhaps because trade estimates for the US and World ending stocks appear to be marginally higher than the May USDA estimate, suggesting another bumper crop outlook. The U.S. Dollar index is lower early morning Wednesday.  July corn is unchanged at $3.65/bushel early in early morning session and December remains at $3.83. 

Prices in the soy complex firmed overnight presumably as traders continue to see the slower planting concerns for beans as bullish.  In recent pre-WASDE surveys, average trade estimates for this year’s U.S bean crop came in at 339 million bushels, shy of the USDA May estimate of 350 million bushels illustrating the thought that the heavy rain could impact planted acres and thereby production. July soybean futures rose 4.5 cents to $9.56/bushel in the early morning session Wednesday, while July soyoil climbed 0.22 cents to 34.15 cents/pound, and July meal dipped $0.30 to $316.2/ton.  

Rainfall and fungus concerns in the winter wheat harvest appeared to drive wheat futures higher overnight.  Traders seem to see a premium in the outlook for winter wheat yields in the southern U.S. Plains. July CBOT wheat futures rose 2.5 cents to $5.3475/bushel early Wednesday morning, while July KC wheat gained 3.75 cents to $5.52/bushel, and July MWE edged 3.5 cents higher to $5.8625.                 

Cattle futures advanced Tuesday ahead of peak summer grilling season and strength in wholesale beef prices suggest Wednesday morning prices could open higher.  August cattle futures surged 1.52 cents to 153.12 cents/pound at the end of trading Tuesday, while December futures advanced 0.82 cents to 155.90. Meanwhile, August feeder cattle futures jumped 1.65 cents to 224.5 cents/pound, and November feeders gained 1.02 to 219.50.    

Ongoing spot market losses continued weighing on hog futures Tuesday. The cash hog and wholesale pork markets were stated lower again at midsession Tuesday, thereby seeming to justify pessimism dominating the hog and pork complex lately. Traders clearly expect little summer strength either, since they’ve pushed the July and August contracts well below spot values. Conversely, if traditional strength reemerges in late June, futures might rebound strongly. August hog futures dove 1.25 cents to 79.40 cents/pound at the close Tuesday, while December slumped 0.67 to 66.62.     

ICE cotton futures lifted again overnight despite surging cotton plantings.  It may have been in part due to a broad-based commodity rally Tuesday in response to a lower dollar that also pushed grains, crude oil, and metals higher.  The weekly USDA Crop Progress report indicated a 20% surge in U.S. cotton plantings last week, with the Texas rate jumping 29% to 75% complete. Those results likely exceeded industry expectations and rendered traders wary of challenging major technical resistance at the 65.00-cent level (basis July futures). July cotton futures gained 0.38 cents to 64.95 cents/pound in early Wednesday morning trading, while December advanced 0.34 to 65.67.