Corn prices are expected to open steady to a nickel lower on Wednesday. The concerns over financial problems in Europe continue to drive the dollar higher and commodity prices lower. Corn prices were generally 1 cent to 3 cents lower overnight. Traders will get new information in USDA’s monthly supply and demand report with official estimates of 2012/13. Prices on Wednesday are expected to remain near current levels ahead of the report which will be released before the markets open Thursday.
Soybeans futures are called to open 9 to 12 cents lower. Overnight trade at was 9 1/4 to 12 1/4 cents lower. Soybean prices continue to slide based on the concern over the new governments in Greece and France and the strengthening dollar. Strong demand for U.S. soybeans and dry areas in major soybean producing areas are supportive factors for prices. Strong export sales, especially to China, are expected to keep upward pressure on prices. Position squaring by noncommercial traders pressured soybean prices on Tuesday.
Wheat futures are called 3 to 6 cents lower. Wheat prices closed higher on Tuesday with spillover support from the corn market. Overnight trade was 2 1/4 to 2 3/4 cents lower at the CBOT, 4 to 4 1/2 cents lower at the KCBT and 3 to 1 1/2 cents lower at the MGE. Wheat prices are seeing added pressures as the value of the US dollar remains strong and as a plentiful wheat harvest is expected.
Cattle futures are called to open mixed. Look for strength in yesterday’s boxed beef prices to lift cattle futures. Minimal cash trade has been reported, but cash prices were higher last week and cattle owners will look to build on that again this week. The instability in the European Union and the firm US dollar continue to be a bearish factor for the market.
Hog prices are expected to open mixed on Wednesday. Cash hog prices declined again on Tuesday, the tenth straight day of declines. But pork prices were up a little bit. While pork prices are still low, they are the highest they have been since April 2. We will need to see a bigger rebound in pork prices before cash hog prices or hog futures can increase very much. The weakness in the stock market and the strength of the dollar will keep some pressure on hog futures on Wednesday.
Cotton Prices are expected to open steady to 15 points lower Wednesday. The long slide in cotton prices continued in overnight trade, but the declines were very small. Still, the July contract has dropped by almost 6 ½ cents in less than three weeks. Several cotton growing areas in Texas have received rainfall over the last couple of days which has pressured prices. India has formally lifted their export ban, putting downward pressure on world cotton prices. The strengthening dollar will pressure cotton futures on Wednesday.