CORN: Corn futures retreated a penny overnight as the market settles into position-squaring mode ahead of tomorrow’s monthly USDA report. Another round of exports to Mexico has helped push prices off of contract lows, and tomorrow’s report is expected to show a cut of about 3 bushel to the acre off of the August report.
SOYBEANS: Soybean futures were also off overnight, losing 3 cents while running into a ceiling of technical resistance drawn at the down-trending daily highs on the charts. Like corn, position squaring in front of the USDA’s report tomorrow is a primary features today. The trade is looking for a 1-1/2 bushel per acre drop from the previous forecast. More important, however, is the latest USDA crop conditions report indicating an alarming area of beans not having yet set pods for this time of year.
WHEAT: Wheat futures were down 3 overnight follow suit with the trend in row crops. However, with recent technical strength, prices may have turned a bullish corner. Thoughts that the USDA could lower world supplies slightly may be viewed as supportive. In addition, spring wheat harvest conditions up north have become too wet to allow growers to continue, and questions are being raised as to whether, or not they’ll be able finish out harvest efforts before heading begins.
CATTLE: Cattle futures are called mixed to higher after a very friendly looking reversal yesterday. Expectations for stronger demand are also surfacing in the form of China needing red meat. This will make things interesting as traders react to a ‘buy the rumor, sell the fact’ type mentality.
HOGS: Hog futures are called mixed to higher. Volatility is the keyword in hogs but a very impressive reversal yesterday suggests prices move higher today.