Corn futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 1 1/4 to 1 3/4 cents lower. The market sentiment remains bullish on ideas that acreage will be less than needed in 2011, ideas of increased demand from China and crop problems in Argentina. However, gains could be limited by light profit-taking ahead of the three day holiday weekend.
Soybean futures are called 2 to 3 cents higher. Overnight trade at 6:45 am CT was 2 1/4 to 3 1/4 cents higher. Bullish momentum and ideas of a supportive Weekly Export Sales report are expected to support the market. Weakness in the dollar is providing some support overnight. However, light volume trade ahead of the extended holiday weekend could limit gains.
Wheat futures are called 1 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 cents lower at the CBOT, 2 1/4 to 3 cents lower at the KCBT and 3/4 to 1 1/4 cents lower at the MGE. Light profit-taking is weighing on futures trade overnight following the strong gains posted on Wednesday. Talk of increased export demand and fund buying helped rally prices yesterday, but positioning ahead of the three day holiday weekend is expected to keep prices on the defensive on the open.
Cattle futures are called steady to mixed. Cash trade developed at mostly $102-$103 yesterday, up mostly $2 from the previous week. Futures rallied on the news. Choppy futures trade is expected today in light volume ahead of the three day holiday weekend. Weakness in choice beef prices of 93 cents on Wednesday and light profit-taking will be bearish factors.
Lean hog futures are called steady to mixed in light pre-holiday trade. Futures were strongly higher on Wednesday, leaving the market vulnerable to some profit-taking in light volume trade ahead of the extended holiday weekend. Traders will also be positioning ahead of the Quarterly Hogs and Pigs report, due out on Monday, December 27.
Cotton futures are trading sharply lower. Further weakness has been seen overnight on profit-taking from the record highs set on Tuesday. Weakness in China’s cotton futures and profit-taking ahead of the three day holiday weekend is weighing on futures. At 6:45 am CT, March cotton was 600 points lower at 148.12 and May is 559 points lower at 134.10 cents.