(AgProfessional) – Corn futures are trading 5 cents lower early morning. Prices pulled back during the overnight session on profit taking amid Friday’s record of high of $8.49 (December). Prices are still anticipated to remain high after USDA slashed production and yield estimates for the new crop. Traders will continue to keep an eye on the market as talk of demand rationing becomes more prevalent.
Soybean futures are trading 12 to 13 cents lower early morning. Prices are being pressured by a combination of profit selling and non-commercial long liquidation. The market remains fundamentally bullish; strongly supported by Friday’s WASDE report. The report pegged soybean yields the lowest in 9 years at 36.1 and production at 2.692 billion bushels.
Wheat futures are trading 4 to 11 cents lower early morning. Spillover pressure from the corn and soybean markets are pressuring wheat prices coupled with slight non commercial liquidation on USDA’s recent supply demand report. The report was overall bearish for the market; however, traders are concerned that USDA did not lower global ending stocks enough considering the serious adverse weather conditions in key production regions.
Live cattle futures are called to open higher this morning. Cash market trade finally picked up late Friday afternoon with prices $1-$3 higher than the previous week. Futures will also be supported by surging boxed beef prices. Friday’s closing prices were $2.43 higher for choice cuts and $1.02 higher for select. Higher outside markets and the lower dollar index should be friendly for prices as well.
Lean hog futures are called to open mixed this morning. Futures are anticipated to open soft, troubled by lower cash prices and the pull back in the grain markets. However, nearby discounts to the lean hog index should help to boost prices along with spillover buying support from the cattle market.
Cotton futures are trading lower early morning. Cotton futures continue to decline; weighed down by an especially bearish report for the cotton market. Global ending stocks were raised to a record high of 74.67 million bales. The trade is now looking ahead to this afternoon’s crop progress report.
