Corn futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 3 3/4 cents lower. Follow-through selling is weighing on futures. Fund selling and the lack of bullish news are pressuring the market. Recent strength in the dollar and sluggish export demand remains a bearish factor as well. However, losses are expected to be limited by ideas that USDA’s Supply/Demand report next week will show further tightening in ending stocks.
Soybean futures are called 8 to 10 cents lower. Overnight trade at 6:45 am CT was 8 1/4 to 9 3/4 cents lower. Long liquidation by the funds is expected to keep the market on the defensive this morning. Weaker gulf basis for soybeans is also bearish and raises concern that export demand is slowing. Recent strength in the dollar is a negative factor for exports. However, ideas that USDA supply/demand revisions will be supportive next week should help limit losses.
Wheat futures are called 5 to 7 cents lower. Overnight trade at 6:45 am CT was 6 1/2 to 7 1/2 cents lower at the CBOT, 5 cents lower at the KCBT and 4 1/2 to 6 cents lower at the MGE. The market is expected to be pressured by profit-taking, further strength in the dollar and fund long-liquidation. Some snow in the Plains has eased weather concerns for the HRW crop as the crop will have some protection for cold temperatures. Losses will be limited by concern about the tight supply of high quality wheat globally. Flooding and previous rainfall has downgraded the wheat crop in Australia.
Cattle futures are called steady to mixed. Cash trade appears to be done for the week and boxed beef prices turned mixed on Thursday. Cash trade peaked early in the week at $107, but mid-week prices were slightly lower. Optimism for improved domestic and export demand has helped rally the market recently, although strength in the dollar is a negative factor for exports.
Lean hog futures are called steady to mixed. Cash trade is expected to be near steady with most business done for the week. Ideas that market ready hog supplies will tighten helped futures rally on Thursday, which could lead to some light profit-taking ahead of the weekend after the April through October contracts hit new highs.
Cotton futures are trading lower this morning. Fund selling and long-liquidation is weighing on futures again today. The market turned lower on Thursday and selling pressure is continuing on Friday. At 6:30 am CT, March cotton was 130 points lower at 139.92 cents.