Corn futures are called 10 to 12 cents lower. Overnight trade at 6:45 am CT was 10 1/2 to 12 1/4 cents lower. Follow-through technical selling is expected to weigh on the market following the limit losses on Wednesday. Further fund long liquidation and strength in the dollar index overnight helped pressure futures overnight. However, the market has rallied off session lows as uncertainty about summer weather and acreage remain underlying bullish factors.
Soybean futures are called 4 to 6 cents lower. Overnight trade at 6:45 am CT was 4 1/4 to 6 1/4 cents lower. Losses in corn and the strong rally in the dollar index are weighing on futures. But losses are being limited by buying that has developed as the market has fallen to the low end of its trading range. Uncertainty about the summer growing season and acreage are underlying supportive factors for the soybean market.
Wheat futures are called 2 to 6 cents lower. Overnight trade at 6:45 am CT as 2 1/4 to 2 3/4 cents lower at the CBOT, 2 1/2 to 3 3/4 cents lower at the KCBT and 4 1/2 to 6 1/2 cents lower at the MGE. Light follow-through selling, losses in corn and strength in the dollar index overnight are weighing on futures. However, technically oversold conditions and some bullish fundamentals are limiting losses. Fund selling and reports of improved growing conditions globally have pressured prices sharply. But the smaller HRW crop and spring wheat planting problems remain bullish market fundamentals.
Cattle futures are called steady to lower. Spillover weakness from Wednesday and further losses in corn will be bearish factors. However, losses will be limited by caution ahead of the cash market developing this week. Strength in boxed beef prices and strong packer margins will likely push cash trade up $1-$2 this week compared to last week.
Lean hog futures are called steady to lower. Follow-through selling and concern that the cash market will not be able to hold onto recent strength are expected to weigh on the market. The Cold Storage report released after the close yesterday was bearish as it showed more pork in storage than expected. Pork cutouts were up 28 cents on Wednesday, but packer margins remain in the red.