Corn futures are called 6 to 9 cents lower. Overnight trade at 6:45 am CT was 6 to 9 1/2 cents lower. Forecasts over the next couple of weeks look favorable for the crop as the high pressure ridge moves out of the Midwest by later this week. The planting season is ending for corn, but crop conditions will be watched closely. Weakness in crude oil overnight is a bearish factor. Losses will be limited by strength in the cash market and uncertainty about this year’s crop acreage and yields.
Soybean futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 7 1/4 to 7 1/2 cents lower. The market was able to break out of its sideways trading range to the upside last week, but the strength has led to some profit-taking losses. Some improved planting weather last week and this week is expected to be followed by favorable crop growing weather. USDA will update planting progress numbers this afternoon. Weakness in crude oil and some strength in the dollar overnight will be bearish factors for the soybean market this morning.
Wheat futures are called mostly lower on the open. Overnight trade at 6:45 am CT was 10 to 13 1/2 cents lower at the CBOT, 6 3/4 to 8 1/2 cents lower at the KCBT and 17 3/4 cents higher in the MGE July contract. Winter wheat futures are being pressured by profit-taking, outside markets and spillover selling in corn and soybeans. But strong demand for spring wheat and the poor planting conditions this spring in the northern Plains and Canada are supporting the MGE July contract.
Cattle futures are called steady to higher. Strength in futures late last week and ideas of firm cash trade this week will be supportive. Packers have strong margins and are in need of cattle. Early ideas are for cash trade up $1-$2 from the bulk of trade at $104 last week. Gains could be limited by summer demand uncertainty.
Lean hog futures are called steady to higher. Short-covering and the premium of the cash market to futures should provide some support. Pork cutouts were up $1.30 on Friday, which will improve poor packer margins. But gains will be limited by ideas of steady to lower cash trade and concern about domestic pork demand as unemployment remains at a high level.
Cotton futures are strongly lower this morning. Profit-taking is weighing on the market after speculative buying pushed cotton prices to 3-month highs last week. At 6:45 am CT, July was 349 points lower and December was 298 points lower.