Corn futures are called 4 to 6 cents higher. Overnight trade at 6:45 am CT was 4 to 6 1/4 cents higher. New-crop is leading the gains on planting delay concerns. USDA pegged planting at 7% complete, down 1% from the five-year average. However, weather forecasts look wet and cool for the Midwest over the next couple of weeks, which will delay planting at a time when it normally makes good progress in the Corn Belt. Old-crop gains are being limited by further weakness in crude oil futures overnight.
Soybean futures are called steady to 1 cent higher. Overnight trade at 6:45 am CT was 1/2 to 3/4 of a cent higher. There is little fresh news in soybeans to help push prices higher. Ideas that China could cancel more export sales as global demand shifts to the newly harvested crop in South America are bearish. New-crop could be pressured by the increased potential for corn planting delays given the wet weather forecasts for the Midwest which could lead to additional soybean acreage. However, spillover support from corn and wheat are expected to support futures lightly.
Wheat futures are called 17 to 20 cents higher. Overnight trade at 6:45 am CT was 16 3/4 to 17 1/2 cents higher at the CBOT, 18 1/2 to 20 1/4 cents higher at the KCBT and 17 3/4 to 18 1/4 cents higher at the MGE. The market is being supported by another decline in winter wheat condition ratings and spring wheat planting delays. Good to excellent rated wheat held at 36% of the crop, although 1% moved from excellent to good. Another 2% fell from fair conditions to the poor to very poor categories, which now stand at 38% of the crop. HRW states in the southern and western Plains continue to show deteriorating conditions. Spring wheat is only 5% seeded, down from 18% at this time last year and the five-year average of 12%.
Cattle futures are called steady to firm on the open. The premium of last week’s cash trade to futures and expectations for the stock market to stabilize today are expected to support futures. The market was able to rebound from early losses yesterday and post gains. Choice boxed beef prices were up 45 cents on Monday. Despite generally larger showlists this week compared to last, cash markets are currently expected to develop near steady when trade develops later this week.
Lean hog futures are called steady to mixed. Cash markets are expected to be steady to lower as packers have been able to find enough hogs to fill slaughter needs. There is concern that high pork prices could be slowing demand, although seasonally demand should be improving. Market ready hog numbers are still expected to tighten over the next few weeks. Look for some choppy trade today as traders look for direction from cash trade.