Corn: Fractionally to 1 cent higher
Soybeans: 8 to 10 cents higher
Wheat: 1 to 3 cents higher
Strength in the soybean market overnight provided light spillover to corn and wheat futures despite a firmer tone in the dollar index. Soybean futures gapped higher on the open and took out the November high amid weather concerns in South America. Rains were a disappointment in Argentina over the weekend and a high-pressure ridge is expected to add stress to the crop.
Speculative action is also key this week after funds lightened their short exposure to the corn market last week and returned to a net long position in the soybean market.
Following Friday's sharp to limit losses, the limit for live cattle expands to $4.50 today. The market is vulnerable to followthrough pressure, but could benefit from short-covering given the discount futures hold to last week's cash trade. Traders will be keeping a close eye on the beef market to start the week, especially amid expectations that packer demand could improve this week as retailers wrap up holiday purchases.
Hog futures are also expected to see a mixed tone to start the week, although nearby futures are vulnerable to profit-taking as they hold a premium to the cash index. Traders are also concerned about signs marketings are still not current, which gives packers more bargaining power.