Corn futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 6 3/4 to 7 3/4 cents lower. The market turned lower overnight as the dollar index traded higher. There is little fundamental news to move the market so traders are taking direction from outside markets. Sluggish export demand has limited buying interest. U.S. corn has struggled to become competitive on the global market despite the recent break in prices.
Soybean futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 to 3 3/4 cents lower. With the lack of fresh news, the market has turned lower overnight as the dollar index has turned slightly higher. The market has made a short-covering bounce the past couple of trading sessions, but there is little other buying interest. Rising production estimates for soybean production in South America will be an underlying bearish factor. Weather conditions have generally been favorable for the crop so far this season.
Wheat futures are called 2 to 4 cents lower. Overnight trade at 6:45 am CT was 2 to 2 1/4 cents lower at the CBOT, 2 1/4 to 4 cents lower at the KCBT and 1 1/2 cents lower at the MGE. The uptick in the dollar index and weakness in corn futures are weighing on the wheat market. Global supply/demand fundamentals remain bearish. Export demand for U.S. wheat remains sluggish as cheaper supplies from the Black Sea region continues to take market share from the U.S.
Cattle futures are called steady to lower. Cash markets are expected to be lower this week. Packer margins remain poor and beef prices were lower on Tuesday. Choice cutouts were down 98 cents and select cuts were 46 cents lower. Showlists are generally larger this week giving packers some leverage in cash negotiations this week.
Lean hog futures are called steady to mixed. The firm tone in the cash market is expected to provide some light support. Packer margins are positive and market ready hog supplies should be peaking soon. However, gains will be limited by some strength in the dollar index overnight and the 16 cent decline in pork cutout values on Tuesday.