Corn futures are trading 8 to 12 cents higher early morning. Corn prices are higher this morning after the market readjusted to USDA’s corn yield reduction. USDA lowered its corn yield average to 146 bushels/acre, 20 bushels lower than the previous month’s estimate. A reduction of this magnitude lowers estimated corn production to approximately 13 million bushels. Weather also remains a supportive factor, although forecasters are calling for weekend rains across the Midwest.
Soybean futures are trading 4 to 6 cents higher early morning. Soybean futures remain under pressure for the third day after posting record gains on Monday. Although yesterday’s supply/demand report was bullish for the market, prices plummeted as traders took profits and weather forecasts across the Midwest improved. USDA slashed soybean yield projections to 40.5 bushels/acre due to drought conditions. However, bullish fundamentals and strong demand for soy products should renew buying interest in the market.
Wheat futures are trading 6 to 10 cents higher early morning. Wheat futures traded steady in the overnight session after a volatile day of trading on Wednesday. The market is being pulled higher the upturn in the corn market, a firm global cash market, and a bullish report for U.S. wheat. USDA reported U.S. ending stocks lower than expected at 664 million bushels. On a class by class basis, the report showed spring wheat forecasts below trade expectations at 435 million bushels. Globally the report was neutral for prices as ending stocks were reported close to pre report averages.
Cattle futures are called to open lower. Cattle futures will open under pressure after suffering moderate losses on Wednesday. Undeveloped cash trade and tumbling boxed beef prices will have cattle futures on the defensive this morning. Cash trade has been sluggish most of the week and is not anticipated to pick up until Friday. Asking prices are reported around $119 in the South and $190 in the north.
Lean hogs futures are called to open mixed this morning. The market is expected to open on both sides of the market this morning. Futures premium to the cash index and market short covering should support help to lift prices. Expected steady cash prices and packer need to procure more hogs will also support market prices. On the other hand, bearish market factors such as waning demand and declining pork cutout value will keep market gains in check.
Cotton futures are trading mixed early morning. Cotton futures are currently trading mixed but mostly lower. Cotton prices closed higher on Wednesday, although lower than early morning highs, after USDA lowered world supply projections. However, lackluster demand for cotton and global economic uncertainty continue to pressure market prices.