Corn futures are called mixed on the open. Overnight trade at 6:45 am CT was 1 cent higher in July and 2 1/2 to 3 1/4 cents lower in deferreds. The July contract still acts like it wants to rally, but gains have been trimmed by outside market pressure. Strong losses in crude oil overnight and strength in the dollar is weighed on deferred contracts. USDA will release a new Crop Progress report this afternoon. Trade expectations are for planting to be around 80% complete, with further delays in the eastern Corn Belt and northern Plains.
Soybean futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/4 to 5 1/2 cents lower. The market turned lower overnight on weakness in crude oil futures and strength in the dollar index. Weekly export inspections to be reported this morning are expected to show sluggish demand for soybeans. USDA will release an updated Crop Progress report this afternoon. If corn planting can show good progress, soybeans could be supported by ideas that less acreage intended for corn will be switched to soybeans. But if soybean planting is closer to average pace, yield ideas will improve.
Wheat futures are called 4 to 8 cents lower. Overnight trade at 6:45 am CT was 6 3/4 to 8 cents lower at the CBOT, 3 to 4 1/4 cents lower at the KCBT and 1 3/4 to 3 cents lower at the MGE. Strength in the dollar and spillover from other crops are expected to weigh on wheat futures. Growing concern about debt in Europe weighed on the dollar overnight. Wheat fundamentals are generally bullish. Early harvest results in the southern Plains are expected to show very poor yields and USDA’s Crop Progress report is expected to show further spring wheat planting delays.
Cattle futures are called lower on the open. The Cattle on Feed report released Friday afternoon is expected to weigh on the market. USDA reported May 1 cattle on feed as of May 1 at 11.2 million head, 107% of a year ago. Placements were much higher than expected at 1.795 million head or 110% of a year ago. Expectations were 104%. Marketing were in line with expectations at 97%. The report is seen as negative for the cattle market although last week's sharp decline should diffuse the market reaction a bit.
Lean hog futures are called steady to lower. Pork cutouts were down over $1 on Friday and cash prices tumbled. Packer margins are poor and steady to lower cash bids are expected today. Strength in the dollar is bearish for the export market. However, losses could be limited by the monthly Cold Storage report from Friday afternoon. Total frozen pork as of April 30 was smaller than expected, although 13% above year ago levels.
Cotton futures are trading lower this morning. Outside markets are weighing on crop futures. Strong gains in the dollar overnight and weakness in crude oil are bearish for ag commodities. At 6:30 am CT, July cotton is 176 points lower and December is 116 points lower.