Corn futures are called 4 cents lower. Overnight trade at 6:45 am CT was 3 3/4 to 4 1/4 cents lower. The market traded choppy overnight, but turned lower as futures are expected to remain in a trading range ahead of the USDA reports due out Thursday morning. Traders are looking for USDA to lower U.S. ending stocks by about 50 million bushels. Some strength in the dollar and weakness in crude oil futures are also weighing on trade.
Soybean futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 3 3/4 cents lower. Slowing bullish momentum and some positioning ahead of the USDA reports due out on Thursday morning are weighing lightly on the market. Losses are expected to be limited by solid export demand and ideas of buying from China as South American crop prospects have been hurt this growing season by drought.
Wheat futures are called 7 to 10 cents lower for winter wheat. At 6:45 am CT the CBOT was 8 1/2 to 9 3/4 cents lower, the KCBT was 7 1/2 to 8 cents lower while the MGE was 1/2 to 2 1/2 cents higher. Profit-taking and consolidation trade is expected at the CBOT and KCBT ahead of the USDA reports due out on Thursday. Trade expectations are for a small reduction in ending stock estimates for the U.S. and globally. Light strength in the dollar index overnight is bearish for wheat trade. Losses are expected to be limited by the expected crop losses in eastern Europe and the Black Sea regions due to cold temperatures and winterkill.
Cattle futures are called steady to mixed. Packer margins remain deep in the red, but there has been some recent improvement. Boxed beef prices were higher on Monday with choice cutouts up $1.54 and select up 99 cents. With generally smaller showlists this week, cash trade could hold near steady. Packers have slowed slaughter and the smaller beef supplies are helping to support beef prices.
Lean hog futures are called steady to lower. Pork cutouts were down 35 cents on Monday. Cash trade is expected to be mostly steady today. Packer margins are negative, but have improved recently. Bullish traders are waiting for strongly demand seasonally as wholesale demand for Easter hams should provide some support to the market.
Cotton futures are trading sharply lower this morning. Reports that Australia is expected to have a record crop despite recent heavy rains are weighing on the market. The market is trading 131 points lower in March and 146 points in July at 6:45 am CT.