Corn futures are called 3 to 5 cents lower. Overnight trade at 6:45 am CT was 3 to 5 cents lower. Following the news that Osama bin Laden has been killed, energy markets were lower overnight. Weakness in crude oil and reports of some planting progress in the western Corn Belt are bearish factors for the market. However, losses are expected to be limited by continued planting delays in the southern and eastern Corn Belt. USDA will update planting progress numbers this afternoon.
Soybean futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 3 3/4 to 5 cents lower. The market was lower overnight amid strong losses in crude oil following the news last night that Osama bin Laden had been killed. Concerns about continued corn planting delays in the southern and eastern Corn Belt and how that could lead to additional soybean acreage are bearish factors. However, losses are being limited by reports of corn planting progress in the western Corn Belt. The strong rally on Friday could also lead to some fund buying interest this morning.
Wheat futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/2 to 2 1/2 cents higher at the CBOT, 2 cents higher at the KCBT and 1/4 of a cent lower at the MGE. Despite some rainfall in the Plains last week, winter wheat crop condition ratings are expected to remain poor. In additions, further spring wheat planting delays are expected in the northern Plains due to cool and wet weather. Gains are being limited by losses in corn and soybeans and some strength in the dollar overnight. Energy markets are lower overnight following the news that Osama bin Laden has been killed.
Cattle futures are called to open steady to lower. Losses in beef prices on Friday and ideas that cash trade will lower again this week are expected to weigh on futures. Choice cutouts were down $2.11 and select cuts were $1.84 lower on Friday. Packer margins are poor and they are slowing slaughter, which will limit demand for cattle again this week.
Lean hog futures are called steady to higher on the open. Strong gains in pork cutout prices on Friday and expectations for firm cash prices are expected to help futures recover from technically oversold levels. Short-covering is expected to provide support, but gains will be limited by technical damage done to the charts and concern about pork demand given high prices and high energy costs.
Cotton futures are trading lower this morning. After the strong gains on Friday, the market has slipped lower again. Long liquidation is weighing on old-crop months and some much needed rainfall in Texas is bearish for new-crop months. At 6:30 am CT, May cotton is 48 points lower at 178.30 cents and December is 229 points lower at 128.64 cents.