Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/4 to 4 1/2 cents lower. The market is being pressured by strength in the dollar index and rainfall in some much needed rainfall in parts of South America. Rain is needed in southern Brazil and Argentina, although it may be too late to help the corn crop very much. Traders are also positioning ahead of the USDA reports due out Thursday morning.

Soybean futures are called 14 to 15 cents lower. Overnight trade at 6:45 am CT was 14 1/4 cents lower. Rainfall in some key soybean growing areas in Argentina is weighing on the market. Rain is expected to help crop conditions, although more hot and dry weather is expected following the midweek rains. Other factors pressuring the soybean market include strength in the dollar index. Trade could be limited by positioning ahead of the USDA reports due out on Thursday morning.

Wheat futures are called 2 to 4 cents lower. Overnight trade at 6:45 am CT was 3 3/4 to 4 cents lower at the CBOT, 3 1/4 to 3 3/4 cents lower at the KCBT and 1 1/2 cents lower at the MGE. The rally in the dollar index overnight and spillover pressure from corn and soybeans are weighing on the wheat market. Export demand is already sluggish and a higher dollar will make U.S. supplies even less competitive on the export market. Trade activity could be limited by positioning ahead of the USDA reports due out on Thursday morning.

Cattle futures are called steady to higher. Boxed beef prices were higher on Tuesday and asking prices from feedlots are firm. Packers are short-bought, leading to ideas that cash trade could be steady o firm this week. However, poor processing margins and overhead technical resistance are expected to limit buying interest in futures trade.

Lean hog futures are called steady to lower. Futures posted short-covering gains on Tuesday, but cash fundamentals could weigh on today’s trade. Pork cutouts were down $1.35 on Tuesday and cash trade was lower. Cash markets are called steady to lower again this morning. Optimism for strong pork exports will be supportive, especially with more foot-and-mouth disease found in China. However, strength in the dollar index overnight is bearish for exports.

Cotton futures are trading narrowly mixed this morning. Choppy trade is expected as the market gears up for the USDA reports due out on Thursday morning. At 6:35 am CT March cotton was 5 points higher and July was 5 points lower.