Corn futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 3/4 to 2 cents lower. Traders will be positioning for the Supply/Demand report due out on Thursday morning. Strength in the dollar and weakness in crude oil pressured prices slightly overnight. Warm and drier weather should be allowing some late season planting in the eastern Corn Belt while forecasts call for generally favorable growing conditions next week.
Soybean futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 7 to 7 3/4 cents lower. Trade expectations for the Supply/Demand report due out Thursday morning are for increased old and new-crop ending stocks compared to May estimates. However, light volume is expected as traders gear up for the report. Outside markets weighed on prices overnight with the dollar index trading higher while crude oil is solidly lower.
Wheat futures are called steady to mixed. Overnight trade at 6:45 am CT was steady to 1 cent higher at the CBOT, 3/4 to 1 cent lower at the KCBT and 4 cents higher to 1 3/4 cents lower at the MGE. Light short-covering ahead of the Supply/Demand report on Thursday morning is helping the market trade choppy overnight. However, gains will be limited by strength in the dollar. Rainfall has improved wheat crop prospects in France and Germany. Although yields are generally poor as expected, harvest is moving into southern Kansas and spring wheat planting progress is well behind normal.
Cattle futures are called steady to mixed. Futures were down sharply on Monday, rebounded on Tuesday, and now are expected to be mixed until more news is available from the cash market. Boxed beef prices were down $1.28 in choice cuts and $1.10 in select on Tuesday, but packer margins remain strong. Strength in the dollar overnight is a bearish factor for cattle futures.
Lean hog futures are called steady to mixed. Packer margins remain poor, but pork cutouts were able to bounce 77 cents on Tuesday. Some of the rally from Tuesday was attributed to talk of improved export business. Strength in the dollar overnight is a bearish factor for export prospects and cash markets are called steady to weak again today.
Cotton futures are trading mixed this morning. Old-crop is lower on continued long liquidation, but new-crop has turned higher on continued concern about crop production as drought conditions continue in Texas. At 6:30 am CT, July was 137 points lower while December was 26 points higher.