Corn futures are called 5 to 6 cents lower. Overnight trade at 6:45 am CT was 5 3/4 to 6 cents lower. Technical selling and outside markets are weighing on corn futures following the strong gains yesterday. The dollar is trading higher and Dow Jones futures lower after the strong moves the other direction yesterday. The market will also be pressured by sluggish weekly export sales reported on Thursday and forecasts for good harvest weather this weekend and most of next week.
Soybean futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 7 1/4 to 8 cents lower. The market is giving back some of yesterday’s gains amid strength in the dollar index and weakness in Dow Jones futures overnight. Outside market and generally favorable weather this weekend and next week to wrap up most of soybean harvest are weighing on futures. Weekly export sales reported on Thursday were a four-month low.
Wheat futures are called 5 to 7 cents lower. Overnight trade at 6:45 am CT was 6 3/4 to 7 cents lower at the CBOT, 7 to 7 1/2 cents lower at the KCBT and 5 cents lower at the MGE. Futures are giving back some of the gains posted on Thursday. The dollar index turned higher overnight, reversing some of the strong losses yesterday. Sluggish export demand remains a bearish concern. Export sales reported on Thursday were near a five-month low as U.S. wheat struggles to compete globally with wheat in the Black Sea region.
Cattle futures are called steady to mixed. Cash trade developed at mostly $120 yesterday, steady to $1 lower than last week. But strength in boxed beef prices this week could help limit losses. Outside markets were supportive for commodities yesterday, but cattle futures were still lower. With the dollar higher and Dow Jones futures overnight, some cattle futures will likely be pressured.
Lean hog futures are called steady to mixed. Pork cutouts were able to stabilize and trade 48 cents higher on Thursday. Cash markets have softened recently, but favorable packer margins could support cash trade next week if pork cutouts can turn higher. Seasonally, the increase in hog numbers is believed to be slowing.
Cotton futures are trading higher this morning. Follow-through buying from the gains yesterday is supporting the market. Improved export demand and outside markets were bullish factors yesterday. Despite some outside market weakness today, futures are higher. At 6:35 am CT, December cotton was 57 points higher at 104.89 cents.