Corn futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 1/4 to 1 1/2 cents lower. Favorable crop weather and strong condition ratings will keep the market on the defensive this morning. Weather forecasts for the next two weeks show seasonal temperatures and periods of rain. USDA pegged condition ratings at 76% good to excellent. While that is even with last week, 3% moved from good to excellent. However, losses should be limited by futures nearing technically oversold levels.
Soybean futures are called 1 to 2 cents lower. Overnight trade at 6:30 am CDT was 3/4 to 2 cents lower. The initial crop condition rating for the year was 75% good to excellent, which was above trade expectations. Last year at this time, only 66% was rated in the top two categories. Weather forecasts remain favorable for the crop over the next two weeks, although the last leg of planting could be delayed. Planting progress at 84% nationally was right on the five-year average.
Wheat futures are called 1 cent higher on the open. Overnight trade at 6:30 am CDT was 1/2 to 1 1/4 cents higher at the CBOT, 3/4 to 1 cent higher at the KCBT and steady to 1 cent higher at the MGE. Short-covering from technically oversold levels and contract lows and heavy rains in parts of the Plains that could have damaged some of the winter wheat crop were supportive factors. But gains are expected to be limited by generally bearish fundamentals. Spring wheat condition ratings remain very strong at 84% good to excellent. Export demand remains sluggish and strength in the dollar will not help the export situation.
Cattle futures are called lower on the open. Follow-through selling is expected in the futures market amid declining boxed beef prices and ideas of lower cash trade this week. Choice cutouts were down 64 cents and select cut fell 82 cents on Monday. New showlists were generally larger this week. The recent weakness in the stock market will keep concerns about the U.S. and global economies alive.
Lean hog futures are called lower this morning. Cash prices were lower on Monday and are expected to be under pressure again this morning. Pork cutouts were down another 58 cents on Monday. Outside markets continue to be a concern as the stock market has fallen strongly and as the dollar has rallied. But with futures at technically oversold levels, short-covering could develop to push prices higher.