Corn futures are called 3 to 4 cents lower. Overnight trade at 6:30 am CDT was 3 1/2 to 4 cents lower. Despite a decline in crop condition ratings, futures were trading lower overnight. Crop ratings at 75% good to excellent are above the ten-year average of 68% and weather forecasts for July remain favorable for crop development in the Midwest. Losses in crude oil and gold overnight and strength in the dollar were also bearish factors.
Soybean futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was steady to 1 1/2 cents lower. Losses in crude oil and gold and strength in the dollar overnight is pushing prices lower despite a decline in crop condition ratings. USDA reported the soybean rating fell by four points last week at 69% good to excellent, although that is still above last year at 67% and the ten-year average at 64%. Weather forecasts point to generally favorable crop weather in July, although more rain this week could lead to flooding.
Wheat futures are called 5 to 6 cents lower. Overnight trade at 6:30 am CDT was 6 to 6 3/4 cents lower at the CBOT and 5 1/4 to 5 1/2 cents lower at the KCBT. Winter wheat harvest is running below normal at 17% versus the five-year average of 23%. Weather forecasts are showing drier weather in the Plains, which will increase seasonal harvest pressure. Despite a small decline last week, winter and spring wheat condition ratings remain well above average.
Cattle futures are called steady to mixed. Cash trade is expected to be mostly steady this week. Boxed beef prices were firm on Monday, with choice cutouts up 76 cents. Smaller showlists this week will also be supportive. But gains in futures will be limited following the rally on Monday that could trigger some profit-taking.
Lean hog futures are called steady to mixed. Pork cutouts were up 49 cents on Monday and cash prices turned higher. Firm cash trade is expected today. But the premium of futures to cash and outside markets will limit gains and could push futures lower. The dollar was higher overnight and Dow Jones futures lower.