Corn futures are called 3 to 7 cents lower. Overnight trade at 6:45 am CT was 3 1/4 to 7 1/2 cents lower. Harvest progress in South America, strength in the dollar index and fund selling are expected to weigh on the market on continued profit-taking after recently hitting four-month highs. Although the corn crop size in South America has been downgraded, new supplies will soon be hitting the export market.
Soybean futures are called 7 to 10 cents lower. Overnight trade at 6:45 am CT was 7 to 10 1/4 cents lower. After hitting six-month highs, profit-taking has developed to weigh n the market. Continued harvest progress in Brazil and Argentina will add fresh supplies to the export market, even though dry weather during the growing season will limit the overall size of the crop. Strength in the dollar index and weakness in crude oil will also add to the pressure.
Wheat futures are called 6 to 7 cents lower. Overnight trade at 6:45 am CT was 6 3/4 to 7 1/2 cents lower at the CBOT, 7 to 7 1/4 cents lower at the KCBT and 7 cents lower at the MGE. Continued weakness in wheat is expected following the news that Russia won’t put restrictions on wheat exports. Russia is expected to be the world’s third largest exporter. Strength in the dollar and spillover weakness from corn and soybeans are also pressuring futures. Weather is currently favorable for winter wheat growth. Warm weather and rain will help growth and forecasts are not showing any threatening cold temperatures.
Cattle futures are called steady to lower. Follow-through selling and outside market weakness are expected to weigh on the market. Cash trade is not expected until later in the week. Packer margins remain poor, although boxed beef prices did turn higher yesterday. Choice cutouts were up $1.83. Regardless, concern about demand remains a bearish concern.
Lean hog futures are called steady to lower. The cash market is expected to be steady to lower today and pork cutouts were down 41 cents on Monday. Packers have been able to fill big slaughter schedules at lower prices as they try to improve negative processing margins. Outside markets are also expected to weigh on the market.
Cotton futures are trading lower this morning. After hitting a seven-session high on Monday, the market has turned lower again. Strength in the dollar and expected weakness in the stock market are bearish factors. At 6:35 am CT May cotton was 67 points lower and December was 66 points lower.