Corn futures are called steady to 1 cent higher. Overnight trade at 6:45 am CT was 3/4 to 1 cent higher. The market was pressured at times overnight by forecasts for rain and temporarily cooler temperatures in southern Brazil and Argentina. However, yield potential has already been hurt by hot and dry weather. Weakness in the dollar index and strength in Dow Jones futures is providing some support. Choppy trade is likely today and tomorrow ahead of the USDA reports due out on Thursday morning.
Soybean futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 3 3/4 cents lower. Profit-taking from the gains on Monday and forecasts for some much needed rainfall in southern Brazil and Argentina are weighing on the market. Concern about declining crop production prospects has been supportive recently. Losses are expected to be limited by outside market support and positioning ahead of the USDA reports due out on Thursday morning. The dollar index is lower and Dow Jones futures higher in overnight trade.
Wheat futures are called 1 to 4 cents lower. Overnight trade at 6:45 am CT was 1 1/4 cents lower at the CBOT, 2 1/4 to 2 1/2 cents lower at the KCBT and 4 cents lower at the MGE. The market is giving back some of the gains from Monday. Spillover weakness from corn and concern that USDA’s global Supply/Demand balance sheets will remain bearish on Thursday morning are weighing on the market. However, losses are likely to be limited by weakness in the dollar index overnight and rebalancing by the index funds.
Cattle futures are called steady to mixed. Boxed beef prices were mixed on Monday and cash trade is not expected to be established until later in the week. Showlists were smaller on Monday than the previous week, which may give feedlots some negotiating power this week. Strength in Dow Jones futures overnight indicates that the market could find some support from outside markets.
Lean hog futures are called steady to higher. Cash markets remain firm and pork cutouts were up 87 cents on Monday. Packers are short-bought and supplies of market ready hogs are expected to tighten seasonally. There is some talk that aggressive slaughter schedules indicate that packers are filling renewed strong export demand.
Cotton futures are trading narrowly mixed overnight. Choppy trade is expected ahead of the USDA reports due out on Thursday morning. Weakness in the dollar and strength in Dow Jones futures could provide some light support.