Corn futures are called steady to 1 cent higher. Overnight trade at 6:45 am CT was 1 to 1 1/4 cents higher. Light profit-taking weighed on futures at times this morning following the recent runup in prices. But hot and dry weather in Argentina and concern about stress in the corn crop is still providing the market support. Profit-taking in the energy markets and strength in the dollar index will limit buying interest in corn this morning.
Soybean futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 1/2 cents lower. The market is trading slightly lower this morning on profit-taking from recent gains. Hot and dry weather in Argentina and southern Brazil is raising some concern about crop stress. Near-term forecasts are still hot and dry although some extended forecasts show improved chanced of rain. Some profit-taking in energy markets and strength in the dollar are also weighing on crop markets.
Wheat futures are called mixed on the open. Overnight trade at 6:45 am CT was 1 to 3 1/2 cents lower at the CBOT, 3 3/4 to 4 1/4 cents higher at the KCBT and 1 3/4 cents higher at the MGE. Strength in the dollar index overnight and sluggish export demand is weighing on futures trade. However, the KCBT and MGE have turned slightly higher after posting losses yesterday although recent precipitation has improved the moisture levels in some key areas of the Plains.
Cattle futures are called steady to lower. Boxed beef prices were mixed on Tuesday in light movement. Retailers are apparently not aggressively buying beef to restock meat counters. Cash market uncertainty will limit losses. Showlists are larger this week, but most packers are believed to be short-bought.
Lean hog futures are called steady to higher on the open. Pork cutouts were up $1.05 in good volume on Tuesday and cash markets were firm. Plans for a big Saturday slaughter will also be supportive for the cash market this week. However, gains could be limited by the premium of futures to the cash index.
Cotton futures are trading narrowly mixed this morning. Outside market support and index fund buying was supportive on Tuesday but choppy trade has been noted so far overnight. At 6:35 am CT, March cotton was 22 points higher at 96.02 cents, but July is 1 point lower at 95.15 cents.