Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/2 to 4 3/4 cents lower. The market drifted lower as fund buying has dried up. However, losses will be limited by some bullish news. The corn crop in Argentina and parts of Brazil has been stressed and yield potential has been lowered due to hot and dry weather. Weakness in the dollar index and strength in Dow Jones futures overnight will provide some underlying support.
Soybean futures are called 9 to 10 cents lower. Overnight trade at 6:45 am CT was 9 1/2 to 10 cents lower. Futures are lower on profit-taking and consolidation trade following the strong gains on Tuesday. South American weather will continue to be watched closely. Crop stress from hot and dry weather has lowered production potential some. Outside markets could help limit losses as the dollar index is trading strongly lower overnight.
Wheat futures are called mostly lower on the open. Overnight trade at 6:45 am CT was 3 3/4 to 4 cents lower at the CBOT, 6 cents lower at the KCBT while the MGE was 1 to 2 cents higher. Sluggish export demand and bearish global supply/demand fundamentals are weighing on winter wheat markets. Precipitation in late fall and so far this winter should benefit the HRW crop. However, losses are expected to be limited by weakness in the dollar index overnight.
Cattle futures are called steady to mixed. Choppy trade is expected while the market waits for cash trade to develop later in the week. Despite poor processing margins and continued weakness in boxed beef prices, packers are keeping slaughter running at a good clip. But there is concern about how long cash prices can hold up without improvement in beef demand and boxed beef prices.
Lean hog futures are called steady to higher. The futures market is expected to be supported by the firm tone in the cash market and pork cutouts. Pork prices have moved higher on both Monday and Tuesday. Packers are keeping steady to firm bids as a relatively big Saturday slaughter is being planned. However, rising slaughter weights and tight packer processing margins could limit gains.
Cotton futures are trading lower this morning. Profit-taking and consolidation trade from the gains on Tuesday are weighing on futures. But losses are being limited by further weakness in the dollar index overnight and strength in Dow Jones futures. At 6:35 am CT, March cotton was 111 points lower and July was 103 points lower.