Corn futures are trading 13 to 15 cents lower early morning. Despite further declines to the corn crop condition rating (good/excellent), corn futures remain lower during early morning trade. Prices remain under pressure from non commercial liquidation due to global economic uncertainty. Outside markets have improved from the previous day but remain lower. Forecasted weather across the Corn Belt remains hot and dry into the next week, remaining a bullish factor for market prices.
Soybean futures are trading 35 to 36 cents lower early morning. The market continues to see significant declines in prices due non-commercial liquidation. Technically, the market was considered to be overbought and unfavorable weekend news out of the EU sent prices on downward spiral. Overall, the market remains fundamentally bullish as weather forecasts across the drought stricken Corn Belt remain unchanged. USDA reported another decline to the soybean good to excellent condition rating on yesterday.
Wheat futures are trading 10 to 21 cents lower early morning. Spillover pressure from the corn and soybean markets are keeping wheat prices on the defensive again this morning. Lower outside markets and the higher dollar index are weighing on prices as well. However, dwindling global wheat stocks due to adverse weather in the Black Sea Region, Australia, and U.S. Plains should help to limit losses.
Cattle futures are called to open higher this morning. Cattle futures are anticipated to open higher on weakness across the grain complex and follow through buying. Although beef prices continue to drop, expected steady to higher cash prices should pulled prices higher during the trade.
Lean hog futures are called to open higher this morning. Weakness in the corn market and short covering are expected to support hog futures on the open. The pull back in the grain markets is a welcomed relief for producers as feed prices were approaching record high levels. The market will see additional strength from tightening hog supplies and firm cash prices. Cash trade is anticipated to be steady to higher during today’s session.
Cotton futures are trading higher early morning. Cotton futures have rebounded on short covering after closing lower on Monday. The market could be in for a bumpy ride today as the dollar continues to gain strength and the outside markets remain lower due to global economic uncertainty.