Soybeans: 1 to 2 cents higher
Wheat: 2 to 4 cents lower
Corn futures favored a weaker tone overnight on spillover from wheat, but as old-crop soybean contracts firmed it pulled corn off its lows. Ongoing concerns about lingering dryness in Argentina are a supportive factor for the corn and soybean markets this morning, but keep in mind that traders will be evening positions for a three-day weekend. The markets will be closed on Monday for Presidents Day. This raises the risk of profit-taking, especially if traders fear a change in the weather pattern in South America.
Also this morning, USDA announced that Japan has purchased 116,000 MT of corn and South Korea has purchased 28,000 MT of soyoil – all for 2017-18. The dollar index is firmer this morning, but remains well within the boundaries of its downtrend.
Cattle futures are called higher on followthrough from yesterday’s gains as well as cash optimism. Higher boxed beef values yesterday add to expectations of higher cash cattle trade, although cash negotiations are expected to linger into the afternoon.
Hog futures are vulnerable to followthrough from yesterday’s losses, but are called higher on the possibility of spreading. But buying will be limited to position squaring amid concerns about the cash hog market. The cash market is called steady to $1 lower this morning.