Corn: Fractionally to 1 cent higher
Soybeans: 5 to 8 cents higher
Wheat: Fractionally to 1 cent lower
Corn futures benefited from short-covering overnight following yesterday's round of fund selling. Spillover from strength in the soybean market supported corn overnight. Traders are keeping a close eye on weather in Argentina, as rains this week are not expected to be heavy enough to counter evaporation ahead of development of a ridge of high pressure that will result in hot and dry conditions next week.
Pressure on wheat futures was limited overnight by ongoing crop concerns in Australia, but ample global supplies remain a weight on the market. Also this morning, USDA announced that China has purchased 162,000 MT of grain sorghum for 2017-18.
Cattle and hog futures are expected to see a mixed start to the day as traders watch cash fundamentals. This week's cattle showlist is larger than last week and packers have seen margins tighten considerably. This combination raises expectations for softer cash bids this week and therefore increases the risk of followthrough from yesterday's losses.
On a positive note, the cash hog market started the week mostly steady and some sources look for firmer bids today due to strong packer margins. December hogs hold a small premium to the cash index, while February futures have cash optimism factored into prices.