Markets trading higher pre-USDA report

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Corn futures are trading higher as of 6:45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT in which they will update old-crop estimates and release their first estimates for 2012/13. The report is expected to show a cut in 2011/12 ending stocks by about 50 million bushels to 750 million, but ending stocks for 2012/13 are likely to be up nearly 1 billion bushels from this year to 1.7 billion.

Soybean futures are trading higher as of 6:45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT in which they will update old-crop estimates and release their first estimates for 2012/13. Soybeans have been weighed down by expectations for a bearish corn report. The trade is looking for a decrease to 221 million bushels for 2011/12, down from 250 million in the April report. Carryout for 2012/13 is expected to be even lower at 170 million bushels.

Wheat futures are trading higher as of 6:45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT. Average of analyst’s new-crop forecasts peg production at 2.2 billion bushels, up from 2.0 billion in 2011. This increase in production can be attributed to a robust hard red winter wheat crop, which could have record-high yields after good rains and production well ahead of normal. The larger crop is expected to boost stocks to an estimated 805 million bushels for 2012/13, up from 781 million estimated for 2011/12.

Cattle futures are trading higher. Cattle futures rebounded as traders regained confidence in beef demand. Look for buyers to place cash cattle bids starting around $117 to $118 in the south and $190 to $192 in the North. Prices will likely be steady to higher in anticipation of an increase in slaughter amid improving packer margins.

Lean hog futures are called steady to lower. The market has seen much volatility the last few days. Hog futures closed mostly higher on Wednesday, amid negative outside factors and a strong dollar. Mixed pork cutout values and weak demand for pork products limited gains from yesterday’s rally in pork prices. However, hog slaughter is expected to be up this week adding strength to prices.

Cotton futures are trading higher as of 6.45 a.m. CDT. USDA will release its Supply/Demand report at 7:30 a.m. CDT. The report is expected to be bearish for cotton. Average pre-report trade estimates forecast the 2012 crop at 16.8 million bales. Exports are expected to increase marginally to 11.7 million bales. This leaves ending stocks for 2012/13 around 4.9 million bales, up 1.5 million from 2011/12. World stocks have been steadily increasing since September, and are expected to be raised again.



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