Corn futures are trading slightly lower early morning. Morning trade has been relatively quiet with futures trading 1 to 2 cents below unchanged. There’s no fresh news surrounding the market and may be another factor in the lulled state of the market. Overall, prices will continue to see support from the long term bullish outlook of the market and the need to ration demand.

Soybean futures are trading 4 to 5 cent higher early morning. November soybeans hit another record high during the overnight session of $17.44 ¾ before pulling back to trade around $17.30. The general fundamentals of the market will continued to strengthen prices however increased volatility due to record high prices may make the markets more vulnerable to non commercial long liquidation.

Wheat futures are trading higher early morning. The recent sell off in the dollar index and rebound in the soybean markets helped to pull wheat futures higher. From a technical standpoint, the market appears to be overbought and therefore more vulnerable to more downside correction. However, anticipated bearish export sales and shipment data may limit market advances.

Live cattle futures are called to open lower this morning. The market is expected to open pit trade on the defensive on cash market uncertainty and declining beef prices. Although prices have climbed dramatically the last few weeks, traders believe the surge in boxed beef prices have topped out and demand for beef products is waning as indicated by falling prices. However, futures may see some support as USDA reported that July beef inventory was lower as compared to the previous month.

Lean hog futures are called to open lower this morning. Pressure from eroding pork carcass values and lower cash prices are expected to weigh on the market at the onset of pit trade. The continued increases in hog production have traders concerned that cash hog and wholesale pork prices will continue to see pressure in the short term, thereby causing futures to decline sharply. However, prices may garner strength as USDA reports the July pork stocks lower than the previous month.

Cotton futures are trading 56 to 62 cents lower early morning. Prices remain under pressure today after the Chinese officials warn that the Chinese economy is expected to experience a “harsh winter” with rising inventories and declining sales.