Corn futures are called 2 to 3 cents lower. Overnight trade at 6:30 am CT was 2 1/2 to 3 cents lower. The market traded lower overnight on light profit-taking from the rally in prices on Thursday. The recent Chinese purchase of Australia feed wheat, which could be a replacement for corn, has been a bearish factor this week. However, losses are being limited by smaller corn production estimates for Argentina and weakness in the dollar overnight. Weekly export sales and shipments will be released this morning. Export sales need to be better than 26 million bushels to remain on pace with USDA’s export forecast.
Soybean futures are called 6 to 7 cents lower. Overnight trade at 6:30 am CT was 5 1/2 to 8 cents lower. Traders were expecting the Chinese delegation visiting Chicago to announce a big purchase of U.S. soybeans after the close on Thursday. They did and the 3.07 million tonne purchase was larger than expected, but futures have drifted lower anyway. Beneficial rainfall in Argentina and spillover weakness in corn were weighing on overnight trade.
Wheat futures are called steady to 2 cent lower. Overnight trade at 6:30 am CT was 1/4 of a cent higher to 1/2 lower at the CBOT, 1/4 to 2 cents lower at the KCBT and steady to 2 cents lower at the KCBT. The market was pressured overnight by spillover weakness from corn and soybeans and ideas that weekly export sales and shipments, to be reported this morning, will be slow. Losses will be limited by weakness in the dollar overnight and continued concern about the Australian wheat crop. Heavy rains and flooding have downgraded much of the crop to feed grade quality.
Cattle futures are called steady to mixed. Futures are expected to be choppy ahead of the Cattle on Feed report to be released after the close. Cash trade developed earlier this week at $106-$107, down $1-$2 from last week. But boxed beef prices were firm on Thursday with choice cutouts up 90 cents. Pre-report estimates are for December placements to be up 14% from year-ago and on-feed numbers to be up 4%.
Lean hog futures are called steady to higher. Cash markets were higher on Thursday and steady to firm bids are expected today. Market ready hog supplies are tightening and slaughter weights are beginning to decline. But gains will likely be limited by profit-taking ahead of the weekend.
Cotton futures are up strongly again overnight. Speculative buying and bullish fundamentals are supporting the market. USDA will release a weekly export sales report this morning and strong sales are expected again. At 6:30 am CT, March cotton was 398 points higher at 156.92 cents and May was 296 points higher at 150.23 cents.