The market is trading higher Wednesday in light volume as traders gear up for USDA’s Prospective Plantings and Grain Stocks reports scheduled for release Thursday morning. Corn futures are called 2 to 4 cents higher. Overnight trade at 6:45 am CT was 1 3/4 to 4 cents higher. Choppy trade is likely on positioning ahead of the reports. Trade estimates for Prospective Plantings range from 91 million to 92.6 million acres. The average is 91.8 million acres.
Soybean futures are called 2 to 4 cents higher. Overnight trade at 6:45 am CT was 2 1/4 to 3 1/2 cents higher. Light follow-through buying pushed futures higher overnight following the solid gains on Tuesday. Pre-report estimates average around 76.9 million acres, down from 77.4 million. Acreage at this level would keep supply/demand balance sheets very tight moving forward. Rain and flooding in parts of Brazil is bullish and some production forecasts could decline if rains continue due to harvest delays and flood damage.
Wheat futures are called mixed on the open. Overnight trade at 6:45 am CT was 4 to 5 cents lower at the CBOT, 1/4 lower to 1/2 higher at the KCBT and 2 3/4 to 3 3/4 cents higher at the MGE. The CBOT turned lower overnight as demand for U.S. wheat remains sluggish. The KCBT and MGE are holding up on the continued dry conditions in the southern Plains and concern about wet and snowy conditions in the northern Plains..
Lean hog futures are called steady to mixed. Cash trade was up on average about $2 on Tuesday, but the 94 cent decline in pork cutouts could limit buying interest. Packer margins have tightened with the rise in cash prices and the decline in pork prices yesterday. However, strong gains in cattle could help pull lean hog futures higher.
Cattle futures are called sharply higher on Tuesday. Electronic trade was up sharply on reports of higher cash trade. There was talk of $2-$3 higher cash trade this week as packer margins remain strong. Choice beef prices were up $1.07 on Tuesday. Ideas of increased seasonal demand and tight market ready cattle supplies are expected to support the cash market.
Cotton futures are slightly higher this morning. The market is up slightly following three consecutive sessions of losses as traders even positions ahead of the Prospective Plantings report due out Thursday morning. At 6:45 am CT, May was 43 points higher and new-crop December was 18 points higher.
Source: Doane Agricultural Services