Corn futures are trading lower this morning. Corn futures are lower for the second consecutive day after prices rallied on a bullish USDA WASDE report. As of this writing the market is down 1.79% and is still negatively affected by harvest pressures, weakness in the soy complex, and lackluster demand for U.S. corn. December corn is down 12 ½ cents.
Soybean futures are trading lower this morning. Soybean futures are sharply lower posting double digit losses early this morning. The market remains under pressure from commercial and non commercial long liquidation due to disappointing export demand and speculation of a large soybean crop out of South America. The previous weeks’ export sales totaled 500,700 tonnes, 249,000 tonnes below the lower range of trade expectations. November soybeans is trading 25 ¼ cents lower.
Wheat futures are trading lower this morning. Spillover pressure from the other grain markets are keeping wheat futures on the defensive. Losses are not a stark as the losses in the corn and soy markets; however continued sharp declines could spark new rounds of long liquidation in the wheat complex. The dollar index is lower at the time of this writing and could potentially help to trim losses. December wheat at CBOT is 10 ½ cents lower, KCBT is trading 8 cents lower; while MGE is 6 ¾ cents lower.
Live cattle futures are called to open mixed this morning. Last week, cattle futures closed moderately lower as grain prices and poor export data offset beef market strength and cash price optimism. Today’s weakness in the grain complex will likely spark liquidation in the livestock markets again this week. However, prices are expected to be supported by short covering and cash prices optimism.
Lean hog futures are called to open mixed this morning. The December contract moves to the forefront as October futures contract expired on Friday. Hog futures are anticipated to open on both sides of the market at the opening of pit trade. Prices will be supported on follow through buying while pressured by easing cash price optimism.
Cotton futures are trading higher this morning. Cotton futures are up this morning despite mounting pressures in the other agricultural markets. The lower dollar index is friendly for prices at this hour, however the overall bearish sentiment of the market will limit gains and possibly pull prices lower. December cotton is 5 points higher.