Corn futures are trading lower early morning. The market is slightly pressured this morning on lack of fresh news and direction in the market. Although the long term outlook remains strongly bullish, the market is vulnerable to long liquidation and price swings due to increased volatility.
Soybean futures are trading slightly lower early morning. Soybean futures are quietly lower this morning on profit taking after the November contract hit another record high of $17.60. As is the case with new crop corn, the long term outlook for soybeans if strongly bullish limiting any losses incurred within the market.
Wheat futures are trading randomly mixed early morning. Trading across the grain complex is relatively quiet this morning with wheat slightly lower in Chicago and randomly mixed at KCBT and MGE. The lower dollar index should help keep prices steady but any hint of bearish news will likely pull prices lower.
Live cattle futures are called to open lower this morning. Cattle futures are expected to open pit trade on the defensive pressured by falling wholesale beef prices and follow through selling. Monday afternoon boxed beef prices were lower for both choice and select cuts. Cash trade is likely to remain undeveloped until the latter part of the week, but prices are anticipated to be steady to lower.
Lean hog futures are called to open mixed this morning. Yesterday’s rally was unexpected because the overall fundamentals of the market are bearish. Even though the market was able to rally yesterday, prices are anticipated to open lower on profit taking, increasingly large pork supplies, and lower cash prices.
Cotton futures are trading lower early morning. The market has given back portions of yesterday’s gains as the Chinese government plans to sale cotton from its state reserve. Speculative reports indicate that the government may potentially sale between 200,00-300,000 tonnes of cotton.