Ahead of the Open: Cool, Wet Conditions Supportive Overnight
Crop calls
Corn: 1 to 3 cents higher
Soybeans: 2 to 3 cents higher
Wheat: 2 to 3 cents higher
Unfavorably cold and wet conditions across the Central Plains and Corn Belt supported grain and soybean futures overnight. Followthrough buying is expected this morning. The cold, wet weather will keep farmers out of fields in the wettest areas and require replanting in flooded or washed out fields. Forecasts signal another active week of weather this week, with rains expected to trend above normal and temps below normal for much of the Corn Belt and Central Plains. While the unfavorable weather gives traders a reason to cover some short positions, funds have shown no willingness to this point to actively reduce their short exposure. The upside is limited to mild corrective buying unless funds actively cover short positions.
A weaker U.S. dollar should also be mildly price-supportive this morning.
Livestock calls
Cattle: Higher
Hogs: Higher
Cattle and hog futures finished last week on a strong note, which is expected to produce followthrough buying this morning. The big discount cattle futures hold to last week's cash cattle trade is supportive. While summer-month hog futures are trading at a premium to the cash index, there's upside price potential as the cash hog market is expected to keep strengthening amid seasonally declining market-ready supplies and strong packer margins.
Traders will also be evening positions ahead of this afternoon's Cold Storage Report.
