Corn futures are trading 3 cents lower early morning. Prices pulled back slightly during the overnight session as the markets break and traders secure profits after an impressive two day rally earlier this week. Prices will continue to see support from the long term bullish outlook of the market, tight supplies, and the need to ration demand.
Soybean futures are trading 6 to 10 cents lower early morning. Nearby November contract posted a new high of $17.34 overnight before falling back marginally this morning. The fundamentals of the market remain intact and will continue to support futures. However, due to the quick advance of prices over the last week, prices will be more vulnerable to rounds of non commercials liquidation.
Wheat futures are trading 4 to 9 cents lower early morning. Wheat futures are down slightly this morning following the lead of the corn and soybean markets. The reversal of the dollar index will also keep wheat futures on the defensive, but speculative talk of dwindling global supplies may spur renewed buying interest in U.S. wheat.
Cattle futures are called to open lower this morning. Cattle futures are anticipated to open lower as boxed beef prices draw back follow through selling. Cash trade remains undeveloped and the uncertainty of the market (cash) is expected to weigh on futures. However, prices are anticipated to pick up the latter half of the week with prices expected to be steady to higher.
Lean hog futures are called to open lower this morning. Rising corn prices and sluggish cash trade are expected to pressure hog futures on the opening of the pit. The trade’s focus has once again turned to the long term implications of rising feed and production costs. Growing pork supplies is also a concern, as daily hog slaughter continues to rise and weigh on futures.
Cotton futures are trading 175 to 202 points lower early morning. The market is lower early morning as traders lock in profits from early week gains as well as the drawback in the grain complex. The higher dollar index is expected to keep advances in check during the day session.