Concern about a shortfall in corn production and outside markets are supporting futures Wednesday, according to Doane Agricultural Services. Planting delays in the eastern Corn Belt could switch some acreage out of corn and flooding in the south also could trim acreage. Outside markets were supportive overnight with strong gains in gold and crude oil while the dollar index was lower.
Soybean futures are called 5 cents higher. Overnight trade at 6:45 am CT was 5 to 5 1/4 cents higher. The market was able to rally on Tuesday and gains were extended overnight. Although planting delays are not critical to yield potential yet, the slow pace of seeding could limit yield potential. On the other hand, corn planting delays could push some acreage intended for corn to soybeans. But strength in gold and crude oil and weakness in the dollar index will provide some support. Gains will be limited by sluggish export demand as global demand has largely shifted to South American soybeans.
Lean hog futures are called steady to mixed. Follow-through buying is expected to be countered by some profit-taking. Cash trade is expected to be mostly steady. Packers have been firm this week as cutouts have shot to record highs and as market ready hog supplies tighten. However, pork prices were down $1.29 yesterday and there is concern that pork prices will continue to slip after wholesalers fill Memorial weekend needs.
Source: Doane Agricultural Services