Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 3/4 to 5 1/4 cents lower. Profit-taking developed overnight to push prices lower after posting new contract highs on Thursday. Weakness in the dollar was a supportive factor yesterday, but the dollar has rebounded in overnight trade. Traders are taking some profits ahead of the weekend and the Crop Production report due out Tuesday, November 9.
Soybean futures are called 3 to 4 cents higher. Overnight trade at 6:45 am CT was 3 to 4 1/2 cents higher. Light profit-taking had weighed on overnight trade, but the market has turned higher again on the continued strong pace of exports. USDA is expected to lower its ending stocks estimate on Tuesday, November 9. Trade expectations are for increased demand projections to more than offset a larger production number.
Wheat futures are called 3 to 4 cents lower. Overnight trade at 6:30 am CT was 3 cents lower at the CBOT, 3 1/2 cents lower at the KCBT and 8 to 8 1/2 cents lower at the MGE. The bounce in the dollar overnight has helped pressure the wheat market. Profit-taking on the rally on Thursday is also a bearish factor. Export demand continues to be disappointing and sales and shipments have been running below the pace needed to reach USDA’s export forecast.
Cattle futures are called steady to lower. Weakness in the cash market this week and the drop in boxed beef prices yesterday will weigh on front end contracts. Cash trade developed at mostly $98, down $2 from the previous week. Choice cutouts were 86 cents lower on Thursday.
Lean hog futures are called steady to higher. The cash market rallied again on Thursday, jumping nearly $4 on average the past two days. Increased Saturday slaughter schedules forced packers to raise bids. Gains could be limited by the lack of further support from outside markets. Weakness in the dollar was bullish for the market yesterday as it will benefit pork exports, but the dollar did rebound some overnight.
Cotton futures are trading strongly higher again this morning. The market is building on record high prices with further gains overnight. Fund buying is being triggered by strong demand and tight cotton stocks. The decline in the dollar and rally in the stock market yesterday was supportive, although the dollar did bounce overnight. At 6:30 am CT, December cotton was 183 points higher at 142.28 cents and March was 219 points higher at 138.85 cents.