Corn futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 3/4 to 2 1/2 cents lower. Some light pre-weekend profit-taking and strength in the dollar index are weighing on the market. However, losses will be limited by tight old-crop corn stocks and strong demand. China has been in the market for U.S. corn. China’s corn futures hit record high levels and further demand from them is likely.

Soybean futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 1/4 cents lower. Light profit-taking from technically overbought levels are weighing lightly on the soybean market. Soybean futures have been trading near six-month highs amid strong export demand and declining crop prospects in South America.

Wheat futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 1/4 cents lower at the CBOT and 2 1/4 to 2 1/2 cents lower at the KCBT. The market if being pressured lightly by strength in the dollar index and spillover selling from corn and soybeans. Weather conditions in the Plains are generally favorable for early season growth in the winter wheat crop and for some early spring wheat planting progress in the northern Plains. But losses will be limited by recent improvement in export demand for U.S. wheat.

Cattle futures are called lower on the open. Futures are technically weak after reversing from solid gains to sharp losses on Thursday. Further weakness in boxed beef prices and the weak tone in the cash market so far this week are bearish factors. Light cash trade developed at $126, down $1 from last week.

Lean hog futures are called lower this morning. Follow-through selling and bearish cash fundamental news are expected to pressure prices. Pork cutouts were down $1.03 yesterday and cash markets turned mostly lower. Expectations are for cash markets to be lower again today.

Cotton futures are trading slightly higher this morning. Strong export demand and talk that drought will persist in U.S. cotton growing regions through the end of June are bullish fundamental factors. At 6:40 am CT May cotton is 29 points higher and December is 16 points higher.