Corn futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 7 1/4 to 7 3/4 cents lower. The market is being pressured by strength in the dollar and weakness in Dow Jones futures overnight. The dollar was supported by reports that Japan was selling the yen on the foreign exchange market. After trading higher the past four weeks, profit-taking and some harvest pressure could also contribute to the losses. Generally favorable harvest weather is expected this week.
Soybean futures are called 10 to 11 cents lower. Overnight trade at 6:45 am CT was 10 1/4 to 11 1/4 cents lower. Outside markets are weighing on commodity trade. Strength in the dollar index and weakness in Dow Jones futures are pressuring commodity markets. The November contract has fallen to near the $12 mark, which if breached could trigger additional selling. Concern about sluggish export demand will be reinforced by the strength in the dollar. Ideas of a larger crop in South America as planting has generally been favorable is also pressuring prices.
Wheat futures are called 5 to 6 cents lower. Overnight trade at 6:45 am CT was 5 3/4 cents lower at the CBOT and 5 3/4 to 6 1/4 cents lower at the KCBT. Strong gains in the dollar index are weighing on winter wheat markets. There is already concern about sluggish export demand and the rally in the dollar index will only increase that. Spillover weakness from corn will also pressure the CBOT. Losses at the KCBT will be limited by weather forecasts calling for mostly dry weather in the southwest Plains. Rain last week helped conditions some, but more rain is needed for the HRW crop. The MGE is finding light support from tight spring wheat supplies.
Cattle futures are called steady to lower. Outside markets, follow-through selling and uncertainty about the cash market this week are expected to weigh on the market. Boxed beef prices improved last week, but packer margins remain poor. However, tight supplies of market ready cattle should limit any weakness in the cash market. Short-covering could help push prices higher after futures fell to the lowest level in a month on Friday.
Lean hog futures are called steady to lower. The steady to weak tone in the cash market and strong rally in the dollar index will weigh on futures. Strength in the dollar is bearish for pork exports, which has been a bullish factor for lean hogs despite the seasonal increase in hog and pork supplies.
Cotton futures are trading strongly lower this morning. Outside market pressure is weighing on futures. The dollar is strongly higher while Dow Jones futures were solidly lower in overnight trade. At 6:35 am CT, December cotton was 201 points lower at 102.36 cents.