Corn futures are called sharply lower on the open. With expanded limits, overnight trade at 6:45 am CT was 35 1/4 to 43 cents lower. Fund selling and long liquidation are expected to weigh on futures again this morning following the bearish Acreage and Stocks reports on Thursday. However, the market could bounce at some point on ideas that USDA's resurvey of some states could cut acreage, uncertainty about summer growing weather and increased export demand on the sell-off. China has reportedly bought as much as 1.6 million tonnes of new-crop U.S. corn in recent deals.
Soybean futures are called 8 to 9 cents higher. Overnight trade at 6:45 am CT was 8 3/4 to 9 cents higher. Spillover selling from corn and wheat weighed on soybeans yesterday, but the smaller than expected acreage number from USDA was supportive and should support prices this morning. USDA estimated 2011 soybean acreage at 75.2 million, down from trade expectations of 76.5 million and the 77.4 million acres planted last year. Uncertainty about summer crop weather could also help the market rebound today.
Wheat futures are called 4 to8 cents higher this morning. Overnight trade at 6:45 am CT was 1 1/4 to 4 1/2 cents higher at the CBOT, 6 1/2 to 7 cents higher at the KCBT and 6 1/2 to 8 3/4 cents higher at the MGE. Ideas that losses were overdone on Monday and the bullish acreage numbers will be supportive for wheat trade. All-wheat acreage came in below trade expectations, although spring wheat estimates were above pre-report trade estimates. Gains will be limited by the larger-than-expected June 1 stocks estimate and the active winter wheat harvest.
Cattle futures are called mixed this morning. Cash trade has still not developed as packers will try to use the recent drop in futures to push prices slightly lower from last week. Deferreds were pressured by the losses in corn on Thursday and sharp losses again overnight will likely keep deferred cattle futures on the defensive again today.
Lean hog futures are called steady to lower. The 92 cent drop in pork cutouts on Thursday and weakness int the cash market are expected to weigh on front end contracts. Deferreds were sharply lower yesterday on the losses on corn and sharp losses again overnight are expected to keep deferred hog futures on the defensive again today.