Corn futures are called steady to 1 cent lower. Overnight trade at 6:45 am CT was 1/2 to 3/4 of a cent lower. Light follow-through selling is expected this morning. USDA’s baseline acreage projection of 92 million acres of corn was bearish as that is up 3.8 million from last year. However, losses are expected to be limited and could turn higher on recent strong export demand from Mexico and on weakness in the dollar index overnight.
Soybean futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 5 1/4 cents lower. Long liquidation is expected to weigh lightly on futures. Demand from China for old-crop soybeans appears to be slowing and is likely to shift to South American supplies soon as harvest in Brazil will begin to pick up soon. However, losses are likely to be limited by the tight ending stocks projections for this marketing year and on weakness in the dollar index overnight.
Wheat futures are called 6 to 7 cents lower. Overnight trade at 6:45 am CT was 6 1/2 to 7 cents lower at the CBOT, 6 1/2 to 7 1/4 cents lower at the KCBT and 6 to 7 1/4 cents lower at the MGE. Spillover pressure from corn and light profit-taking from the gains on Monday are expected to weigh on the market. However, recent strong export demand, drought concerns for China’s wheat growing regions, concern about the U.S. HRW crop and weakness in the dollar index overnight will remain underlying supportive factors.
Cattle futures are called steady to higher. Strength in futures yesterday and stabilized boxed beef prices are leading to ideas of firm cash trade this week. The volume of boxed beef sales was good and prices were up slightly. Smaller showlists this week will also give feedlots some reason for holding out for higher prices.
Lean hog futures are called steady to firm. Cash bids were lower again on Monday, but the 68 cent jump in pork cutout values. Packer margins are positive, but most have the majority of needs covered for the week. Expectations for firm world meat demand and spillover support from cattle are expected to provide some support.
Cotton futures are trading sharply higher this morning. Speculative buying is helping the market rebound from profit-taking losses on Monday. At 6:30 am CT, March cotton was 285 points higher at 188.90 cents and December was 182 points higher at 124.50 cents.