Corn futures are trading 6 cents lower. Corn prices turned lower over night as the U.S. dollar index increased and concerns over the global economy returned. The credit downgrade in Spain weighed heavily on commodities. Also, Fed Chairman Ben Bernanke provided no insight as to whether the Fed would take measures to stimulate the U.S. economy, which in turn motivated investors to sell off risky assets.
Soybean futures are trading 12 to 16 cents lower. Fundamentals for the market remain encouraging and will limit losses, however the state of the global economy is carrying more weight than fundamentals. The Spanish credit downgrade, no insightful news from U.S. Fed Chairman Ben Bernanke concerning the U.S. economy sent stocks and commodities tumbling overnight. The higher dollar index is also bearish for the market.
Wheat futures are trading 3 to 11 cents lower. Wheat futures are trading lower along with the corn and soy markets. Yesterday’s interest rate cut by China spurred optimism in the global economy and was beneficial for prices. However, Spain’s lowered credit rating and no explicit news as to how the U.S. Federal Reserve plans to stimulate the U.S. economy are bearish for prices. If stressful crop conditions persist in the Black Sea Region, market prices may see some support.
Cattle futures are called to open mixed. The market is called to open sideways as the dollar index is up and box beef prices closed mixed. Pressures from outside markets are also expected to weigh on market prices. Trade in the cash market is expected to pick up today, with prices called steady to higher.
Lean hog futures are called to open mixed to lower. Hog futures are anticipated to open soft on profit taking and discounts in the cash market. Hog prices are expected to see pressure from the outside markets and the higher dollar index. Tight supplies and steady to higher cash prices should lend support to the market.