Corn futures are called 1 cent lower on the open. Overnight trade at 6:30 am CDT was 3/4 to 1 cent lower. Technical selling after falling below support yesterday and favorable weather for the crop will be bearish factors this morning. However, losses should be limited by strength in the stock market yesterday and in Dow Jones futures overnight and some weakness in the dollar.
Soybean futures are called 3 to 4 cents higher. Overnight trade at 6:30 am CDT was 2 3/4 to 3 3/4 cents higher. Outside market support and some concern about delays for the last leg of planting will be supportive. The stock market was up strongly on Wednesday and Dow Jones futures were higher overnight. Firm crude oil prices and a lower dollar overnight will also be supportive. However, gains will be limited by favorable weather for the crop that is already emerged.
Wheat futures are called 1 to 2 cents higher. Overnight trade at 6:30 am CDT was 1 3/4 to 2 cents higher at the CBOT, 1/2 to 1 1/2 cents higher at the KCBT and 1 to 1 1/2 cents higher at the MGE. Light short-covering is expected to be supportive after futures fell to new contract lows on Wednesday. Weakness in the dollar overnight will be slightly supportive. However, fundamentals remain bearish. Winter wheat harvest is getting underway in the southern Plains and early yield reports have been strong. Spring wheat condition ratings are running well above normal.
Cattle futures are called steady to higher on the open. Spillover strength from Wednesday and the steady to firm cash trade so far this week will be supportive. Cash trade was mostly $94 this week, which is a premium to the futures market. Strength in the stock market on Wednesday and gains in Dow Jones futures overnight will help rally the market. Gains will be limited by weakness in boxed beef prices. Choice cutouts were down 41 cents on Wednesday.
Lean hog futures are called steady to mixed. The cash market rebounded on Wednesday, with favorable packer margins and tightening supplies of market ready hogs. This should help push front end futures higher. Strength the stock market and a lower dollar will be supportive. But gains will be but pork cutouts falling $1.31 on Wednesday.