Corn futures are called 1 to 2 cents lower. Overnight trade at 6:30 am CDT was 1 1/4 to 2 1/4 cents lower. Futures were on the defensive last night amid strong losses in DJIA futures and the extended rally in the dollar amid continued turmoil in global financial markets. The strong pace of planting and forecasts for warmer weather should help crop condition ratings as most of the crop has adequate or better soil moisture.
Soybean futures are called 1 to 3 cents lower. Overnight trade at 6:30 am CDT was 1 1/4 to 3 cents lower. Outside markets are expected to weigh in on futures this morning. Losses in DJIA futures and the extended rally in the dollar are expected to pressure prices. Declining export demand and improved planting conditions this week are bearish factors. USDA reported soybean planting progress last week at 38%, which was below trade expectations.
Wheat futures are called 1 to 2 cents lower. Overnight trade at 6:30 am CDT was 3/4 to 1 3/4 cents lower at the CBOT, 3/4 to 1 cent lower at the KCBT and 1 1/2 to 2 cents lower at the MGE. The extended rally in the dollar overnight and spillover weakness from corn and soybeans are expected to weigh on wheat futures. Fundamentals remain bearish as export demand is slow and winter wheat condition ratings remain strong. Forecasts call for rain in some of the drier areas of the southern Plains. Spring wheat planting progress is running near normal and should be making progress on its final leg this week.
Cattle futures are called steady to lower. Outside market weakness and the weak tone in the cash market are expected to weigh on futures. Live cattle trade early this week has been down $1-$2 from last week. Boxed beef prices have likely topped for now as wholesale orders for Memorial weekend have been filled. Choice cutouts were down 41 cents on Tuesday.
Lean hog futures are called lower on the open. Cash markets have been on the defensive this week and pork cutouts continue to fall. Pork cutouts were down 73 cents on Tuesday. In addition, the extended rally in the dollar is a bearish factor for pork cutouts.