Grain prices pull back overnight

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Corn futures are trading 4 cents lower early morning. Corn futures are being pressured by long liquidation and rising Brazilian corn exports. The overall tone of the market remains bullish as crop conditions and yield expectations continue to decline. Traders are expected USDA to cut yield estimates dramatically in next week’s WASDE report. Weekly export sales are expected to be bearish today with estimates between zero and 200,000 tonnes.

Soybean futures are trading 6 to 10 cents lower early morning. Soybean futures are in for another day of volatile trade as updated weather forecasts reduced rain amounts anticipated to hit the Midwest this week. Fundamentally, the market is sound and should see additional support form weekly export sales. Sales are expected to range between 250,000 to 450,000 tonnes.

Wheat futures are trading 3 to 9 cents lower early morning. Spillover pressure from the corn and soybean markets are causing wheat prices decline early Thursday. Currently the dollar index is trading lower which should provide support to prices along with weekly export sales. However, with spring wheat harvest advancing as it is, prices at MGE may be on the defensive throughout the session.

Live cattle futures are called to open mixed this morning. Cattle prices are expected to open uneven today pressured by cash market uncertainty and lower wholesale beef prices. Currently cash trade seems to be at standstill with movement expected to pick up as late as Friday. Asking prices remain firm at $118 in the South and $185 in the North.

Lean hogs are called to open mixed this morning. Hog futures are expected to bounce back from yesterday’s losses on short covering and the surge in the pork carcass value. However, rising prices may be met with resistance by lower cash values and tumbling grain prices.

Cotton futures are trading higher early morning. Cotton prices are trading higher this morning as monsoon rains remain below average levels. Deteriorating crop conditions, due to heat stress are also boosting prices early morning.



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