Corn futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/4 to 2 3/4 cents lower. Profit-taking has been weighing lightly on the corn market following the recent gains. Outside markets are also weighing on commodities as the dollar index is higher overnight while crude oil is lower. Soybeans have been providing support to corn, but soybeans were trading lower overnight as well.
Soybean futures are called 1 to 3 cents lower. Overnight trade at 6:45 am CT was 1 1/4 to 3 cents lower. The market has been rallying and is near its recent high, but light technical selling and profit-taking are weighing on futures overnight. Fundamental news remains generally bullish as demand for U.S. soybeans remains strong while soybean production estimates for South America continue to decline. Strength in the dollar and weakness in crude oil futures overnight are also a bearish influence on the market.
Wheat futures are called mostly lower on the open. Overnight trade at 6:45 am CT was 1 3/4 to 3 cents lower at the CBOT, 1 to 1 1/4 cents lower at the KCBT while the MGE was 3/4 to 2 1/2 cents higher. Winter wheat is being pressured by strength in the dollar and spillover pressure from corn and soybeans. Global supply/demand fundamentals remain an underlying bearish factor. However, the MGE is higher and support continues to come from commercial buying.
Cattle futures are called steady to higher. Packers are short-bought and are expected to boost bids well above the $128-$129 last week. Boxed beef prices have been strengthening and the packer processing margins have improved, although they remain in the red. Tight fed cattle supplies will help feedlots negotiate higher prices. Gains in futures are expected to be limited by concern about beef demand with wholesale prices at current high levels.
Lean hog futures are called steady to higher. Cash hog trade turned firm on Thursday. Packers were buying hogs for next week as traders are anticipating improving demand seasonally while market ready hog supplies tighten. Spillover support is expected from the cattle market as well. Gains in the futures market will be limited by poor packer margins and outside markets as the dollar index is higher overnight.
Cotton futures are trading lower this morning. Technical selling and outside market pressure are weighing on the market. At 6:40 am CT, may cotton was 28 points lower and December was 38 cents lower.