Corn futures are called 4 to 9 cents lower. Overnight trade at 6:45 am CT was 4 1/2 to 9 1/2 cents lower. The market is giving back some of yesterday’s gains as the dollar index was higher overnight. There was talk yesterday of a hot, dry pattern developing over the Corn Belt the next couple of weeks. However, generally favorable weather for crop growth is expected over much of the Midwest this upcoming week. Losses are expected to be limited by concern about losing acreage to flooding.
Soybean futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 7 1/4 to 8 1/2 cents lower. After posting strong gains on Tuesday, futures turned lower overnight as the market remains in a sideways trend. Strength in the dollar is a bearish factor for commodity markets. Fundamentals remain mixed. Crop conditions are expected to improve over the next week as weather remains generally favorable. However, forecasts for a hot and dry weather pattern to develop out a week helped rally prices.
Wheat futures are called 7 to 18 cents lower. Overnight trade at 6:45 am CT was 7 1/4 to 14 1/2 cents lower at the CBOT, 11 3/4 to 13 1/2 cents lower at the KCBT and 16 3/4 to 18 1/2 cents lower at the MGE. Renewed pressure from strength in the dollar and spillover weakness from corn are weighing on the market. Seasonal winter wheat harvest pressure could weigh on futures, although the HRW production shortfalls remain a fundamentally bullish factor. Lost spring wheat acreage in the northern Plains and in Canada will be an underlying supportive factor for the MGE.
Cattle futures are called steady to higher. Follow-through buying in the futures market, higher boxed beef prices and expectations for $1-$2 higher cash trade this week will be supportive factors. Choice cutouts were up $1.48 and select cuts were $2.07 higher on Tuesday. The rally in beef prices is helping packer margins, which should encourage them to raise bids to fill slaughter needs.
Lean hog futures are called steady to higher. Strength in the cash market is expected to support the futures market. National average cash trade was up nearly $4 yesterday. Despite poor margins, packers are raising bids for slaughter need as market ready supplies tighten. Gains in the futures market could be limited by ideas that cash prices at current levels are unsustainable due to the poor packer margins.