Corn futures are called 1 to 2 cents lower. Overnight trade at 6:30 am CDT was 1 1/4 to 1 3/4 cents lower. The rally in the dollar overnight and favorable planting weather in the Corn Belt this week will pressure prices. Forecasts remain favorable for the next 5-7 days before the weather pattern is expected to turn wetter. Weekly export sales will be released this morning and trade expectations range from 30-43 million bushels. Firm cash markets amid slow farmer selling will help limit losses in front end contracts.
Soybean futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 1/4 to 1 cent lower. Outside markets are expected to weigh lightly on futures trade as the dollar rallied overnight. Commercial buying has been supportive for soybeans as export demand remain solid. Weekly export sales are expected to be 11-22 million bushels. However, the favorable harvest conditions in South America and ideas that demand will shift to those newly harvested supplies will limit buying interest.
Wheat futures are called 1 to 2 cents lower. Overnight trade at 6:30 am CDT was 1 1/2 to 2 1/2 cents lower at the CBOT, 1 1/4 to 1 1/2 cents lower at the KCBT and 1 1/4 cents lower at the MGE. Strength in the dollar overnight and generally bearish fundamentals are expected to weigh on the market. Abundant stocks remain and underlying bearish factor. However, export sales have been decent recently. Weekly export sales to be released this morning are expected to be in the 13-24 million bushel range. Sales need to average just under 10 million bushels over the next two months to reach USDA’s export forecast. Shipments need to be around 26 million bushels.
Cattle futures are called steady to mixed. Cash trade so far this week has generally been $1-$2 lower this week. With most business done for the week, choppy futures trade is expected in light volume. Boxed beef prices were mixed on Wednesday. There is concern that the cash market and beef prices have topped for now.
Lean hog futures are called higher on the open. Cash trade has firmed this week as pork cutouts continue to rise. Pork cutouts were up $1.17 on Wednesday. Seasonally declining slaughter and improving demand are supporting pork prices. The premium of deferred contracts to the April contract (which expires at noon) will limit gains.