Corn futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/4 to 2 1/2 cents lower. The market is being pressured by strength in the dollar index overnight and reports of some good rains in Argentina. While the rain is coming late in the growing season, the precipitation could help some of the late planted crop. Losses will be limited by the tight supplies of corn in the cash market that has helped basis levels firm recently.
Soybean futures are called 8 to 9 cents lower. Overnight trade at 6:45 am CT was 8 1/2 to 9 cents lower. Reports of good rainfall in some of the drier areas of Argentina have led to some price weakness and profit-taking in soybeans following the strong gains on Monday. Export demand has improved recently, but could slow the next couple of weeks as China demand will hit a lull due to its New Year celebrations. Weakness in the dollar index has been a supportive factor, but it turned higher overnight.
Wheat futures are called 3 to 4 cents lower. Overnight trade at 6:45 am was 3 3/4 to 4 1/4 cents lower at the CBOT, 3 1/4 cents lower at the KCBT and 1/4 to 1 1/4 cents lower at the MGE. The market has turned higher recently, but is being pressured lightly this morning by strength in the dollar index and spillover weakness in corn and soybeans. Export demand has improved some, but competition for export sales will remain strong as global wheat supplies are abundant.
Cattle futures are called mixed this morning. Boxed beef prices turned solidly higher on Monday, but packer margins remain deeply in the red. Choice beef prices were up $1.52 and select cuts were $2.21 higher. Choppy futures trade is expected on uncertainty about the cash market this week. Market ready cattle supplies are tight, but poor processing margins could encourage some packers to slow slaughter schedules.
Lean hog futures are called steady to mixed. The cash market has started the week steady to higher, but pork cutouts were down 37 cents on Monday and packer processing margins aren’t very good. Some profit-taking from the gains on Monday could weigh on futures today, but some strength is possible if the cash market can open steady to firm again.
Cotton futures are trading slightly lower this morning. Outside markets are weighing lightly on futures as the dollar index turned higher overnight while Dow Jones futures were lower. At 6:35 am CT March cotton was 27 points lower and July was also 27 points lower.