Corn futures are called 10 to 15 cents lower. Overnight trade at 6:45 am CT was 9 1/2 to 15 1/2 cents lower. The market was pressured overnight by continued reaction to the bearish Supply/Demand report released on Wednesday morning and outside markets. USDA projected slowing demand and an increase in ending stock in the 2011/12 marketing year. Losses in crude oil and gold coupled with strength in the dollar are weighing on corn prices. Further planting delays in the eastern Corn Belt and northern Plains will help limit losses.
Soybean futures are called 15 to 18 cents lower. Overnight trade at 6:45 am CT was 15 1/2 to 18 1/4 cents lower. Outside market pressure and the lack of any supportive news are weighing on futures. Sharp losses in gold overnight, weakness in crude oil and strength in the dollar are bearish factors. Export demand has slowed and the Weekly Export Sales report to be released this morning is expected to confirm this. Losses could be limited by USDA’s tight ending stocks estimate for the 2011/12 marketing year.
Wheat futures are called 14 to 17 cents lower. Overnight trade at 6:45 am CT was 16 1/4 to 17 cents lower at the CBOT, 17 1/2 to 18 1/2 cents lower at the KCBT and 14 cents lower at the MGE. Despite poor crop prospects in the southern Plains and spring wheat planting delays in the northern Plains, futures were lower overnight. Strength in the dollar and weakness in gold and crude oil encouraged fund long liquidation. There has been some rain in the southern Plains and forecasts for more this weekend, but it is too late for much of the HRW wheat crop.
Cattle futures are called steady to lower on the open. The $2.14 drop in choice cutouts and lower cash trade this week are expected to weigh on futures. Concern about beef demand will resurface due to the weakness in choice cutouts yesterday. Light cash trade has developed this week at $112-$113 compared to $115 last week. Weakness in corn prices will be bearish for deferreds as cheaper feed could encourage beef production.
Lean hog futures are called steady to higher. Strength in the cash market and pork cutouts will be supportive. Pork cutouts were up 56 cents on Wednesday. Export demand is expected to remain strong. USDA is projecting exports in 2012 to be up 2% from this year. However, gains will be limited by lower corn prices, which could encourage some additional pork production.
Cotton futures are sharply lower this morning. Another round of fund long liquidation is weighing on cotton prices. Sharp losses in gold and weakness in crude oil along with gains in the dollar index are bearish factors. At 6:30 am CT, July is 461 points lower and December is 414 points lower.