Corn futures are called 4 to 7 cents lower. Overnight trade at 6:45 am CT was 4 to 7 1/2 cents lower. Fund long liquidation weighed on futures again overnight. The market is technically weak. Futures fell to the lowest level in three months last week and the selling pressure looks like it will continue today. Weather conditions are generally favorable for crop development, although flooding remains a problem in some areas. The outlook for the next two weeks shows not dominating high pressure ridge developing over the Corn Belt.
Soybean futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 1 1/2 to 2 3/4 cents lower. Spillover pressure from corn and technical selling after falling to a four-week low last week is weighing on futures. Generally favorable weather for crop growth is a bearish factor. No high pressure ridge is expected to become entrenched over the Midwest over the next two weeks. However, flooding concerns and acreage uncertainty could limit weakness.
Wheat futures are called 8 to 11 cents lower. Overnight trade at 6:45 am CT was 8 1/4 to 10 3/4 cents lower at the CBOT, 9 1/2 to 10 1/2 cents lower at the KCBT and 9 1/2 cents lower at the MGE. Seasonal harvest pressure and technical selling weighed on futures overnight. Winter wheat harvest reports have shown some better HRW yields than were expected, although expectations were quite low in many areas. Fund selling on speculative long liquidation are expected to pressure futures again this morning.
Cattle futures are called steady to mixed. The market is expected to be choppy as traders try to size up what the cash market will do this week. With wholesale demand for July Fourth sales complete, beef prices could ease. Packer margins have tightened, so if beef prices can’t hold up, the cash market could ease. Cash trade rallied to $112 last week.
Lean hog futures are called lower this morning. The Quarterly Hogs and Pigs report released Friday afternoon showed a slight year over year increase in both market hog and breeding hog inventories. The inventories were a little larger than the average of the pre-report estimates but the differences probably aren't large enough to have a big impact on prices. Still, the data shows that hog supplies will be above year ago levels over the next couple of months.