Corn futures are called 2 to 3 cents lower. Overnight trade at 6:30 am Was 2 3/4 to 3 1/4 cents lower. Follow-through selling from the losses on Friday is expected to weigh on corn futures. Technically, futures fell below support levels last week and outside markets remain a concern, although the stock market could rebound slightly this morning and the dollar was lower overnight. Favorable crop weather and ideas of improved crop condition ratings last week are bearish factors.
Soybean futures are called 1 to 2 cents lower. Overnight trade at 6:30 am was 1 to 1 1/4 cents lower. After the strong losses on Friday, futures are called lower again this morning. The Dow Jones Industrial Average fell below 10,000 on Friday, but if the stock market can stabilize today, losses in soybeans could be limited. Favorable weather for crop growth and talk of China cancelling up to 10 cargoes of South American soybeans are bearish factors. Losses could be limited by expectations of below normal planting progress.
Wheat futures are called steady to narrowly mixed. Overnight trade at 6:30 am CDT was 1/4 of a cent lower to 3/4 higher at the CBOT, steady to 1/4 higher at the KCBT and 1/2 to 3/4 of a cent higher at the MGE. With futures at contract lows and technically oversold, short-covering should help limit losses and could push prices higher. Export demand remains sluggish and strength in the dollar is bearish for exports, although the dollar was down slightly overnight. Seasonal harvest pressure for winter wheat and strong spring wheat condition ratings will be bearish factors.
Cattle futures are called steady to mixed. The market is expected to stabilize after the strong losses on Friday. Boxed beef prices were down strongly on Friday with choice cutouts down $1.47 and select cuts down $1.74. But still positive packer margins and futures discount to cash could prompt some short-covering for the futures market. Gains will be limited by concern about recent losses in the stock market and global economic problems.
Lean hog futures are called steady to mixed. Short-covering could provide some support this morning as futures are nearing technically oversold levels and as outside markets have stabilized after the losses on Friday. The light slaughter last week could help pork cutouts bounce and with market ready hog supplies expected to tighten, the cash market could turn higher this week.