Late call on Chicago
CBOT soybean futures are called to start the session 10 to 12 cents higher. July wheat, which represents the new crop, is called to open 1 to 2 cents per bushel lower. Corn is called 3 to 5 cents higher.
"It looks like the market overreacted to the downside Monday, and with the U.S. dollar lower and solid underlying demand, corn & soybean futures are poised to extended the higher overnight theme," a CBOT floor analyst said.
Meanwhile, rumors that the lack of progress in negotiations with the Argentine government and farmers could lead to a resumption of a farmers strike in Argentina next week are seen supporting futures as well, traders said.
Wheat has a lack of technical support after recent losses, traders said. CBOT July wheat needs to return above $8.95 to $8.96 in the next two trading days, or the market is likely to continue its technical sell-off, said Mike Zuzolo, analyst for Risk Management Commodities. "If we don't regain the $8.95 support level in the next two sessions, the downside is another 40-60 cents in July Chicago wheat," Zuzolo said in a note to clients.
Corn is seen steadier as a new round of showers currently over eastern Iowa, eastern Missouri and parts of Wisconsin are expected to keep producers out of the fields.
"It looks like the market overreacted to the downside Monday, and with the U.S. dollar lower and solid underlying demand, corn & soybean futures are poised to extended the higher overnight theme," a CBOT floor analyst said.
Meanwhile, rumors that the lack of progress in negotiations with the Argentine government and farmers could lead to a resumption of a farmers strike in Argentina next week are seen supporting futures as well, traders said.
Wheat has a lack of technical support after recent losses, traders said. CBOT July wheat needs to return above $8.95 to $8.96 in the next two trading days, or the market is likely to continue its technical sell-off, said Mike Zuzolo, analyst for Risk Management Commodities. "If we don't regain the $8.95 support level in the next two sessions, the downside is another 40-60 cents in July Chicago wheat," Zuzolo said in a note to clients.
Corn is seen steadier as a new round of showers currently over eastern Iowa, eastern Missouri and parts of Wisconsin are expected to keep producers out of the fields.
