Corn futures are called steady to 1 cent lower. Overnight trade at 6:45 am CT was 3/4 of a cent lower. The market traded higher most of the overnight session, but outside markets pushed prices have pushed prices lower. Strength in the dollar is bearish as financial markets react to news from Italy as they changed leaders this weekend. USDA’s smaller crop production estimate and tight ending stocks projection last week will provide underlying support.
Soybean futures are called 8 to 9 cents higher. Overnight trade at 6:45 am CT was 8 1/4 to 9 1/4 cents higher. Technical buying is helping the market rebound from recent losses. There are ideas that export demand has improved with the break in prices. However, gains are expected to be limited by outside markets as the dollar index was higher overnight. Also, ideas of large soybean crops in South America in 2012 will limit strength.
Wheat futures are called mixed on the open. Overnight trade at 6:45 am CT was 2 1/2 to 4 cents lower at the CBOT, 4 1/2 to 5 3/4 cents lower at the KCBT while the MGE is 2 1/4 cents higher. Winter wheat futures are expected to open lower on strength in the dollar and spillover pressure from corn. Outside markets are being affected by uncertainty in the European debt crisis as Italy changed leaders over the weekend. However, the MGE is trading higher overnight amid tight stocks of high protein wheat.
Cattle futures are called steady to mixed. Cash trade and firm beef prices last week were supportive for futures trade. However, poor packer margins and ideas that beef prices could ease as wholesalers deal with slow retail beef demand ahead of Thanksgiving could limit strength in futures. However, tight supplies of market ready cattle and reduced beef supplies due to reduced slaughter could help support beef and cash cattle prices still this week.
Lean hog futures are called steady to mixed. Pork cutouts were down 27 cents on Friday and cash markets are expected to be steady to lower again today. Market ready hog numbers remain ample. However, some strength could come from ideas of continued strong export demand, solid domestic demand and ideas that market ready hog supplies will soon peak.
Cotton futures are trading strongly lower this morning. Financial market uncertainty is weighing on cotton futures. The euro zone debt crisis remains a concern for the global economy as Italy changed leaders over the weekend. December cotton is trading 131 points lower at 6:40 am CT.