Corn futures are called steady to 1 cent lower. At 6:45 am CT, overnight trade was 1/2 to 1 cent lower. Futures drifted slightly lower in choppy trade as the market is gearing up for the USDA reports due out on Wednesday morning. Pre-report trade estimates are for a slightly lower corn production estimate from USDA’s October forecast. Traders are expecting ending stocks to be lowered as well.
Soybean futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 1 1/4 to 1 3/4 cents lower. The market drifted slightly lower as traders gear up for the USDA Crop Production and Supply/Demand reports due out on Wednesday morning. Fund selling has been weighing on the market recently. Export demand has been rather sluggish, although there was some talk that China might be getting back into the market. Traders are expecting little change in USDA’s production estimate, but a slight revision in the ending stocks numbers.
Wheat futures are called 1 to 4 cents higher. Overnight trade at 6:45 am CT was 3/4 to 1 cent higher at the CBOT, 2 1/2 to 4 1/2 cents higher at the KCBT and 1 1/2 cents higher at the MGE. Traders are gearing up for the Supply/Demand report on Wednesday morning. Also, due to a resurvey of spring wheat producers, USDA production estimates will also be watched for direction this week. The markets have been in a choppy, sideways pattern in recent weeks. Gains have been limited by sluggish export demand as wheat from the Black Sea region has taken U.S. market share. But some short-covering ahead of the USDA reports supported futures overnight.
Cattle futures are called steady to mixed. Futures were higher last week, led by gains in the cash market. However, packer margins are poor and futures traders may wait until the cash market becomes better defined this week before pushing futures higher or lower. Cattle supplies remain tight so cash markets are not expected to slip much if at all this week.
Lean hog futures are called lower on the open. Pork prices continue to decline as pork cutouts were down another $1.51 on Friday. The tone in the cash market is expected to be lower as hog supplies remain ample. Increased pork supplies appear to be outweighing demand at this time so until pork cutouts can turn higher, a weak tone is expected in the cash and futures markets.
Cotton futures are trading lower this morning. Cotton prices drifted lower most of last week and again overnight. However, Chinese buying has helped limit losses as they replenish state reserve stocks. At 6:30 am CT, December cotton was 26 points lower.