Corn futures are called 12 to 14 cents lower. Overnight trade at 6:45 am CT was 12 to 13 1/2 cents lower. Technical selling after the rally to new highs last week and ideas that current weather conditions will help improve crop condition ratings are weighing on futures. USDA pegged the crop at 69% good to excellent, up 2% from last week and 1% above the ten-year average for this time of year. Strong losses are being posted despite concern about the loss of some corn acreage along the Missouri River Valley due to flooding.
Soybean futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/4 to 4 1/2 cents lower. The market has remained in a trading range overnight, but is being pressured by losses in corn. Strong planting progress last week and above average condition ratings are bearish factors. USDA estimated planting at 875 complete, just 2% below the ten-year average. The initial crop condition rating for this season was 67% good to excellent, up 2% from the ten-year average for this time of year. Weather conditions this week should help conditions improve, except for flooded areas in the Missouri River Valley.
Wheat futures are called 3 to 8 cents lower. Overnight trade at 6:45 am CT was 3 1/4 to 4 3/4 cents lower at the CBOT, 7 1/2 to 8 1/4 cents lower at the KCBT and 7 to 8 cents lower at the MGE. Follow-through selling continued to weigh on wheat futures overnight. Spillover weakness from corn and rainfall in Europe that has improved wheat crop prospects there are weighing on futures. Winter wheat harvest is 22% complete compared to the ten-year average of 22% complete. However, losses should be limited by the poor HRW crops in the HRW belt. Also, spring wheat planting delays continue in North Dakota and Montana. Spring wheat condition ratings are at 68% good to excellent, 4% below the ten-year average.
Cattle futures are called steady to higher. Choice boxed beef prices rebounded yesterday, gaining $1.44. Strength in futures on Monday, firm beef prices and a decline in showlists should help cash prices trade steady or even slightly higher this week.
Lean hog futures are called steady to higher. The 67 cent jump in pork cutouts values and expectations for steady to firm cash trade will be supportive. Ideas that pork export demand is improving with increased demand from South Korea should provide some support. However, gains could be limited by concern about domestic pork demand.