Corn futures are called 10 to 11 cents lower. Overnight trade at 6:45 am CT was 10 1/2 to 11 1/4 cents lower. Outside markets are again weighing on the market. Sharp gains in the dollar and weakness in Dow Jones futures are weighing on corn trade. Renewed concern about the euro zone debt crisis is weighing heavily on the financial markets. In addition, crude oil was strongly lower overnight. Corn harvest progress climbed to 78% as of Sunday compared to the ten year average of 67%.
Soybean futures are called 13 to 14 cents lower. Overnight trade at 6:45 am CT was 13 1/2 to 14 cents lower. Commodity markets are being pressured by outside markets. Concern about the euro zone debt crisis is pressuring Dow Jones futures and crude oil prices while the dollar index is sharply higher. Soybean harvest progress was pegged at 87% complete as of Sunday, up from the ten-year average of 83%.
Wheat futures are called 8 to 10 cents lower. Overnight trade at 6:45 am CT was 9 3/4 to 10 cents lower at the CBOT, 7 3/4 to 9 1/2 cents lower at the KCBT and 6 1/2 cents lower at the MGE. The market has continued lower overnight on pressure from outside markets. The sharp rally in the dollar index will make U.S. wheat even less competitive on the global export market. U.S. wheat is already struggling to compete with cheaper supplies from the Black Sea region. Winter wheat planting progress was 89% complete as of Sunday, which is right on the ten-year average. Winter wheat condition ratings improved slightly last week to 46% good-to-excellent. The crop rating is in line with a year ago, but is below the long-term average.
Cattle futures are called steady to lower. Outside markets and lackluster beef demand and boxed beef prices are expected to weigh on futures. Strength in the dollar is bearish for exports and losses in the stock market are a bearish indicator for domestic beef demand. However, losses should be limited by smaller showlists that could help hold cash markets steady this week. Also, Japan’s decision to ease import restrictions is a bullish factor.
Lean hog futures are called steady to lower. Outside market pressure and weakening cash fundamentals are expected to weigh on the market. Gains in the dollar and weakness in the stock market are bearish factors. Pork cutouts were down 62 cents on Monday and cash markets are expected to be steady to lower this morning.
Cotton futures are trading lower again this morning. Strength in the dollar and weakness in Dow Jones futures are weighing on cotton trade. Cotton harvest is 55% complete compared to the ten year average of 51%. At 6:40 am CT, December cotton was 54 points lower.