Soybeans: Fractionally to 1 cent lower
Wheat: 1 to 2 cents higher
Key this morning is if traders view the small setback in the corn market overnight as a buying opportunity given yesterday’s technical improvement. Corn ended the overnight session fractionally lower, hovering just beneath yesterday’s high. But if traders give the International Grain Council’s updated balance sheets attention, it could pressure prices as the group raised its global 2017-18 corn crop peg by 14 MMT from last month to 1.054 billion metric tons. It also raised its global wheat crop peg, although wheat benefited from short-covering overnight.
Traders have to wait until tomorrow for the weekly export sales data due to Monday’s government holiday. The U.S. dollar index has seen two-sided trade so far today, but the index remains below 91.00, which boosts the U.S.’s competitiveness.
Cattle futures are called higher on followthrough from yesterday’s gains as well as expectations for $1 to $2 higher cash cattle trade with last week’s mostly $120 trade. This week’s showlist is smaller, which gives feedlots more bargaining power. Optimism about the economy spurring improved demand for red meat is also a plus for cattle and hog futures.
Following yesterday’s losses, hog futures are expected to see a mixed tone. But buying will be limited due to varied cash hog demand due to weather problems in the eastern portion of the nation slowing marketings, as well as a plant disruption in Oklahoma that has slowed processing.