Corn futures are called 2 to 3 cents lower. Overnight trade at 6:30 am CDT was 2 1/2 to 2 3/4 cents lower. Favorable weather for the crop and rising yield potential will weigh on the market this morning. Crop condition ratings are likely to improve again this week. Futures were able to be pulled slightly higher on Thursday, but it took strong gains in soybeans and firm crude oil prices. With little movement seen in outside markets overnight, the corn market drifted lower.
Soybean futures are called 1 to 3 cents lower. Overnight trade at 6:30 am CDT was 3/4 to 3 1/4 cents lower. Strong commercial buying and outside markets helped rally soybean prices yesterday. There was some talk of support from the NOAA report showed favorable conditions for the development of La Nina this summer, but currently the weather is favorable for early season soybean growth. Some end-of-week profit-taking after the gains on Thursday is likely this morning.
Wheat futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 1 to 1 1/4cents lower and the KCBT was 3/4 to 1 cent lower. Wheat fundamentals remain bearish and seasonal harvest pressure is increasing. Export demand is sluggish and world wheat supplies are large. But futures are reaching technically oversold levels and are near contract lows, which could lead to some short-covering ahead of the weekend.
Cattle futures are called mixed this morning. Light support could come from firm cash trade this week. Live trade yesterday was mostly $95, up about $1 from last week and dressed was $154-$155, up $2 to $3 from last week. But the losses in futures yesterday and weakness in boxed beef prices will be bearish for trade today. Choice cutouts were down $1.65 and select cuts were $1.95 lower yesterday.
Lean hog futures are called steady to mixed. Cash trade fell again on Thursday and pork cutouts were down 48 cents. This could weigh on futures this morning, but losses could be limited by short-covering ahead of the weekend and ideas that tightening supplies of market ready hogs over the next month or two will help cash prices stabilize soon.