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. The market has come under pressure since hitting a new high on Monday. Concern about heat and drought in Argentina while much of the corn crop was pollinating has eased as cooler temperatures and some chances of rain are forecast. Spillover support from soybeans and small losses in the dollar index overnight will help limit losses.


 


Soybean futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/4 to 7 1/4 cents higher. The market rebounded overnight following the weakness on Monday that was led by fund selling. Cooler weather in Argentina and forecasts for some rain led to the profit-taking. Light strength in crude oil and weakness in the dollar overnight will provide some support to soybeans as well.


 


Wheat futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 2 3/4 cents lower at the CBOT, 2 3/4 cents lower at the KCBT and 1 3/4 cents lower at the MGE. The market is trading slightly lower following the gains on Monday. Weather in Australia has been bullish for U.S. wheat. Heavy rainfall and flooding has led to up to half of the current wheat harvest to be downgraded to animal feed or low-grade milling wheat. Tightening global wheat supplies should help boost demand for U.S. supplies. However, export demand is currently sluggish and export shipments last week were poor at only 10.3 million bushels.


 


Cattle futures are called steady to lower. Futures were pressured sharply on Monday by profit-taking and some follow-through selling is expected this morning. However, losses are expected to be limited by some steady to firm cash trade reported yesterday at $106-$106.50. Choice cutouts were up $1.02 on Monday.


 


Lean hog futures are called steady to lower. Cash trade was weak on Monday as packers have slaughter needs covered for now. Bearish momentum in futures and the lower cash market sentiment is expected to keep the futures market on the defensive.


 


Cotton futures are trading lower this morning. Light profit-taking weakness is weighing on cotton futures so far in 2011. However, demand rationing and tight ending stock projections remain underlying bullish factors. At 6:30 am CT, March cotton was 60 points lower at 141.60 cents.