Corn futures are called to open 1 to 3 cents higher. Corn prices traded mostly lower overnight but opened higher. Strong cash basis and increased demand for corn will support the market. China is expected to import more than 6 million tonnes of corn in 2012/13, increasing demand for US corn.
Soybean futures are called to open 7 to 8 cents lower. Outside market pressure and profit-taking are weighing on soybean futures. However, losses should be limited by news that export sales of 480,000 tonnes of soybeans were sold to China. Losses will also be limited by concern of decreased soybean supplies in South America. Overall, supply/demand fundamentals remain bullish for the market.
Wheat futures are called to open mixed. Wheat futures turned lower over night on profit taking from recent gains in the market. Dry weather concerns across key wheat producing regions (US Plains, Russia, Ukraine, Kazakhstan) will support prices and limit losses. Traders are concerned that dryer temperatures will damage wheat crops, thus decreasing global supplies.
Cattle futures are called to open higher. Prices are steady as traders gear up for today’s release of the USDA Cattle on Feed Report. The report is expected to show a 12 percent decrease in April cattle placements, which will strengthen market prices. Prices are expected to see support from the cash cattle trade also, where prices are called to be steady to $1 dollar higher.
Lean hog futures are called to open higher. Hog futures are being supported by gains in the cattle market. Pork cutouts surged on yesterday with ribs up $5.83 cents and pork bellies up $2.93. Trade in the cash markets is called 50 cents to $1 higher, lending additional support to the market.
Cotton futures are trading higher this morning. Cotton futures rebounded after closing at a 2 year low on Thursday. Solid shipments and good net export sales for upland cotton helped boost market prices.