Corn futures are called 8 to 9 cents lower. Overnight trade at 6:45 am CT was 8 1/4 to 8 3/4 cents lower. The market was pressured overnight by rumors that China will raise interest rates. The news hit soybeans the hardest, but spillover selling is weighing on corn as is weakness in crude oil and gold futures. Weekly export sales to be reported this morning is expected to be bearish as the recent rally in prices is believed to have slowed demand.
Soybean futures are called 30 to 35 cents lower. Overnight trade at 6:45 am CT was 33 to 35 cents lower. Profit-taking and long liquidation has been triggered by rumors that China will raise interest rates. The move could slow the economy in China and thus slow export demand. Soybean oil is also being pressured by weakness in crude oil trade. However, demand currently remains strong as USDA has reported sales to China several days this week. Weekly export sales to be reported this morning are expected to remain strong.
Wheat futures are called 8 to 10 cents lower. Overnight trade at 6:45 am CT was 10 to 10 3/4 cents lower at the CBOT, 8 to 8 1/4 cents lower at the KCBT and 5 to 6 cents lower at the MGE. Spillover pressure from soybeans and corn weighed on futures overnight. The weekly export sales report due out this morning is expected to be bearish. Sales and shipments are expected to fall below the pace needed to reach USDA’s export forecast. Winter wheat condition ratings have been poor, but some rain in the Plains and Midwest should help crop ratings improve some.
Cattle futures are called steady to higher. Cash trade developed on Thursday at $156 dressed in Nebraska and Iowa, up about $2 from last week. This could help boost trade in the South from the $97.50-$98 trade last week. Showlists are smaller this week, but boxed beef prices continue to decline. Packers remain short-bought and if beef prices can improve, the cash market should also find support.
Lean hog futures are called steady to higher. The national average cash prices on Thursday were up $2.60 Packers are gearing up for a big Saturday slaughter. But gains will be limited by the 56 cent drop in pork cutout values. Pork supplies remain larger with the increase4d slaughter and high slaughter weights.
Cotton futures are sharply lower this morning. Rumors that China is considering raising interest rates spooked the market on concern that the move would slow demand for cotton. At 6:30 am CT, December cotton was 446 points lower at 139.75 and March was 500 points lower at 134.18 cents.