Corn futures are called 2 to 3 cents lower in front end contracts. Overnight trade was 2 3/4 cents lower in old-crop contracts although December was 1/2 of a cent higher. Light profit-taking from the rally on Wednesday and outside market pressure is weighing on futures. Crude oil is lower and the dollar higher in overnight trade. However, losses are expected to be limited by bullish supply/demand fundamentals. Ending stocks are projected to be only 675 million bushels, which would be the smallest in 15 years. The stock-to-use ratio is forecast to be only 5.0%, matching the modern day low set in 1995/96.


 


Soybean futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 3/4 cents lower. The Supply/Demand report was neutral yesterday and soybeans were left to follow corn. Outside markets could provide some light pressure as crude oil and gold traded lower overnight while the dollar was higher. However, continued strong export demand and the still tight ending stocks projection from the USDA will help limit losses.


 


Wheat futures are called 7 to 10 cents lower. Overnight trade at 6:45 am CT was 9 to 9 1/4 cents lower at the CBOT, 10 to 10 1/2 cents lower at the KCBT and 7 to 8 1/2 cents lower at the MGE. The market is giving back much of yesterday’s rally amid weakness in corn, strength in the dollar and profit-taking from recent gains. USDA left U.S. supply/demand numbers unchanged. Underlying support is expected to come from concern about the drought in China that is threatening wheat production and tight supplies of high-quality wheat globally.


 


Cattle futures are called steady to mixed as traders wait for the cash market to develop. Expectations are currently for steady to trade this week compared to the previous week. Packers are relatively short-bought, but they are dealing with tighter margins following recent losses in boxed beef prices. Projections for strong export demand could provide underlying support.


 


Lean hog futures are called steady to higher. Cash markets were firm on Wednesday and pork cutouts were up 45 cents. Despite the increased pork production this year, strong export demand has helped support prices. Increased pork sales to South Korea led to USDA raising their pork export forecast by 60 million pounds in the February Supply/Demand report.


 


Cotton futures are sharply higher this morning. Speculative buying pushed prices to record highs on Wednesday and the market is pushing higher again overnight. At 6:30 am CT, March was 428 points higher at 184.86 cents and December was 230 points higher at 126.85 cents.