Corn futures are trading 9 to 13 cents higher early morning. The September corn contract has reached an all time high of $8 per bushel during the overnight session with the December contract not far behind. New crop corn across the Midwest continues to deteriorate as the worst drought in over 20 looms over the region. Prices continue to climb higher as the traders expect a substantial slash to average corn yields in next month’s supply/demand report.
Soybean futures are trading 28 to 35 cents higher early morning. The August soybean contract reached an all time high of $17 per bushel during the overnight session. Soybean futures are skyrocketing as excessively dry weather persists. Currently there are no forecasts for substantial rainfall across the Midwest as new crop beans enter their essential pod-setting stage. The market remains fundamentally sound and prices should continue to push higher as concerns about declining soybean yields mount.
Wheat futures are trading 11 to 15 cents higher early morning. Although the wheat market is not as fundamentally bullish as the corn and soybean markets, wheat prices are displaying an impressive rally all their own. The market is currently being supported by tighter global supplies due to drought in the Black Sea Region and extreme dryness in parts of Australia. Spillover strength from the corn and soy markets are providing additional boosts to prices as well.
Cattle futures are called to open mixed this morning. The market is anticipated to open the pit uneven as boxed beef prices continue to struggle. Wednesday’s boxed beef prices closed lower, with choice falling over $2 and select declining 36 cents. Cash trade is considered to be complete for the week with prices reported around $116 in the South and $185 in the North. However, spillover buying across commodities in general should lend support to the market.
Lean hog futures are called to open higher this morning. Lean hog futures are called to open on the upside on follow through buying and futures discount to cash. The market will also be undergirded by yesterday’s higher cash prices and higher outside markets.
Cotton futures are trading higher early morning. Cotton futures are trading higher on spillover buying in the grain complex. Higher outside markets and a lower dollar index are encouraging market prices as well this morning.