Corn futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 6 3/4 to 8 1/4 cents lower. Outside markets are weighing on corn futures trade. The dollar index has turned solidly higher and Dow Jones futures are lower overnight amid continued concern about the European economies. Also, the outlook for slowing economic growth in China is a bearish concern. But while prices have pulled back, they remain near the highest level in several months on strong export demand, tight old-crop supplies and competition for acreage this spring.
Soybean futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 3/4 of a cent to 2 1/4 cents lower. The market had rallied for ten consecutive sessions before pulling back on Monday. Follow-through technical selling and outside markets are weighing on futures overnight. Strength in the dollar index and expected weakness in the stock market are weighing on most commodities. Concern about slowing economic growth in China is a concern for U.S. soybean demand. However, the smaller South American soybean crop and still strong exports will remain an underlying bullish factor.
Wheat futures are called lower this morning, led by winter wheat. Overnight trade at 6:45 am CT was 11 1/4 cents lower at the CBOT, 9 3/4 to 11 cents lower at the KCBT and 3 1/2 cents lower at the MGE. The markets are being pressured by strength in the U.S. dollar index and spillover pressure from corn and soybeans. Global supply and demand fundamentals remain bearish and strength in the dollar and slowed economic growth in China would slow export demand for U.S. wheat. However, losses at the MGE are being limited by concern that some acreage could be shifted from spring wheat to soybeans in the northern Plains this spring.
Cattle futures are called lower on the open. Follow-through selling and long liquidation are expected to weigh on the market. Concern that high beef prices will hurt demand remains a bearish concern. Outside markets overnight are not helping commodity markets. Strength in the dollar index is bearish for beef exports and expected weakness in the stock market is a negative indictor for domestic demand.
Lean hog futures are called steady to lower. Cash markets are expected to be steady to lower as packer margins remain poor and as plants have most slaughter needs covered for the week. Pork cutouts were down 17 cents on Monday. The market is looking for seasonal improvement in pork demand, but so far it has been soft. Strength in the dollar index overnight is bearish for pork exports.
Cotton futures are trading mixed this morning. The market is consolidating following the strong gains on Monday on news that India is banning cotton exports. At 6:35 am CT May cotton was 12 points higher and December was 83 points lower.