Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 3 3/4 to 4 3/4 cents lower. Continued outside market weakness weighed on corn futures overnight. Dow Jones futures are trading lower while the dollar index is higher. A bearish fundamental factor is sluggish export demand. However, losses are expected to be limited by tight ending stocks projections and strong domestic usage in corn for feed and ethanol production.
Soybean futures are called 5 to 6 cents lower. Overnight trade at 6:45 am CT was 5 1/2 to 6 1/4 cents lower. The market is giving back some of the strong gains from Tuesday. Rumors of export business continue to go unconfirmed. Outside markets are expected to weigh on soybean futures as the dollar index was higher again overnight while Dow Jones futures are lower.
Wheat futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 3/4 to 4 1/4 cents lower at the CBOT, 4 to 4 1/4 cents lower at the KCBT and unchanged at the MGE. Strength in the dollar index and spillover pressure from corn and soybeans are weighing on wheat futures. Sluggish export demand continues to be a bearish factor as the U.S. is losing market share to cheaper supplies from the Black Sea region.
Cattle futures are called steady to higher. Follow-through buying from Tuesday and further strength in boxed beef prices will be supportive. Choice cutouts were up $1.85 and select cuts were $1.06 higher. However, gains in futures could still be limited by uncertainty about the cash market and bearish outside market factors.
Lean hog futures are called lower on the open. Further weakness in pork cutouts values and the weak tone in the cash market are expected to weigh on futures trade. Pork cutouts were down $1.40 on Tuesday. With seasonally large supplies of market ready hogs and declining pork prices, the cash market is expected to remain on the defensive.
Cotton futures are mixed this morning. December is higher on tight supplies of deliverable cotton while deferreds are being pressured by outside market weakness. At 6:40 am CT December cotton was 165 points higher while March was 3 points lower.