Ahead of the Open: Crop Markets Mixed Overnight, Livestock Expected Softer

Posted on 07/28/2017 7:50 AM

Crop calls

Corn: Steady to fractionally higher
Soybeans: 1 to 2 cents lower
Wheat: 3 to 6 cents higher

Wheat futures were supported overnight by final results from the Wheat Quality Council's spring wheat tour. Scouts found an average yield of 38.1 bu. per acre from North Dakota, northern South Dakota and western Minnesota. The yield was down 18.6% from the five-year tour average. A weaker tone in the U.S. dollar index added to support in wheat futures. Meanwhile, corn and soybean traders are evening positions to end the month and keeping an eye on the weather. The National Weather Service calls for below-normal precip to start August.

 

Livestock calls

Cattle: Lower
Hogs: Lower

Cattle futures are called lower on news of additional cash cattle trade at $117, which is about $2 lower than last week. News that Japan will hike tariffs on frozen beef from the U.S. shouldn't have a big impact on price action today, as it was expected yesterday. Traders clearly have a negative bias toward the cattle market, but pressure should be limited as lower cash trade is factored into prices. Meanwhile, hog traders are concerned pork belly prices will decline from their record highs, dragging the carcass value down. The cash hog market is called steady to $1 lower amid ample supplies, but futures already have cash weakness factored into prices.

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