Corn futures are called 9 to 12 cents lower. Overnight trade at 6:45 am CT was 8 3/4 to 12 1/2 cents lower. Further losses are expected in the corn market this morning. Technical selling, strength in the dollar index again overnight and generally favorable crop growing conditions forecast for the next couple of weeks in the Corn Belt are bearish factors. However, the outlook for very tight ending stocks and uncertainty about the amount of flooding in the Missouri River Valley should help limit losses.
Soybean futures are called 15 to 17 cents lower. Overnight trade at 6:45 am CT was 15 1/4 to 17 cents lower. The market was lower overnight amid concern about the global economy, further strength in the dollar overnight, spillover weakness from corn and forecasts for generally favorable crop growing weather in the Midwest the next couple of weeks. Factors that could help limit losses are the still very tight ending stocks projections and uncertainty about flood damage in the Missouri River Valley.
Wheat futures are called 9 to 10 cents lower at the CBOT and KCBT. At 6:45 am CT, overnight trade was 9 3/4 to 10 cents lower at the CBOT, 8 3/4 to 10 1/4 cents lower at the KCBT while the MGE was steady to 1 1/4 cents lower. Strength in the dollar index overnight, further weakness in the corn market and the recent increase in projections for global ending stocks will weigh on wheat futures. There is concern that strength in the dollar could slow export sales early in the new marketing year for wheat. However, the smaller HRW wheat crop in the U.S. and spring wheat planting delays/prevented plantings could limit losses or provide some support.
Cattle futures are called steady to mixed on the open as traders wait for some direction in the cash market. Expectations are for mostly steady trade with the $105-$106 trade last week. Boxed beef movement was very good yesterday, although prices were lower. Further weakness in corn will be a bearish factor for deferred contracts. Some traders could head to the sideline ahead of the Cattle on Feed report due out Friday afternoon.
Lean hog futures are called mostly higher this morning. Pork cutouts were able to rally by $2.28 on Wednesday. Tightening supplies and good demand from packers has helped keep the cash market higher this week. However, strength in the dollar and weakness in corn will be bearish factors for deferred contracts.