Corn: 1 to 2 cents higher
Soybeans: Fractionally to 1 cent higher
Corn and soybean futures saw two-sided trade overnight, but ended near session highs. World Weather, Inc. says while February rainfall has been inadequate in Argentina for many crops, improvement may be on the horizon. The group says while weather models point to relief in March, which would benefit later-developing soybeans and corn, it adds “the change will likely come a little late for many crops that have already completed the reproductive process.”
Also this morning, the U.S. dollar index is firmer, which limited buying in the crop markets overnight.
Livestock futures are expected to benefit from light followthrough from yesterday’s gains as well as improvement in the product markets. Choice boxed beef values surged $3.35 yesterday and pork values improved $1.27 – both lifting packer margins.
Traders will be monitoring the online Fed Cattle Exchange later this morning for possible cash guidance. Early expectations are for steady to possibly higher cash cattle trade after last week’s nearly $130 cash trade. Meanwhile, losses in the cash hog market are moderating, which signals a possible near-term low may be in the works.