Corn futures are called steady to mixed. Overnight trade at 6:30 am CDT was steady to 1/4 of a cent lower. Overnight trade was quiet as traders begin to gear up for the Crop Production and Supply/Demand reports due out on Thursday morning. Strength in crude oil and weakness in the dollar will be supportive. But gains will be limited by generally favorable crop weather. Seasonal warm temperatures and rainfall should keep crop condition ratings strong.
Soybean futures are called steady to 2 cents lower. Overnight trade at 6:30 am CDT was 1/4 of a cent higher to 1 3/4 cents lower in the new-crop November contract. Market activity could be limited ahead of the USDA Crop production and Supply/Demand reports due out on Thursday morning, but technical weakness and generally favorable weather for crop growth could push prices slightly lower. Losses will be limited by strength in crude oil and weakness in the dollar overnight. Also, there could be some short-covering ahead of the USDA reports.
Wheat futures are called 1 to 2 cents higher. Overnight trade at 6:30 am CDT was 3/4 to 1 3/4 cents higher at the CBOT, 1 1/2 cents higher at the KCBT and 1 3/4 cents higher at the MGE. Short-covering may develop this morning with help from weakness in the dollar and heavy storms in parts of Kansas that may have damaged some of the winter wheat crop. Traders will be gearing up for the USDA Crop Production and Supply/Demand reports due out on Thursday morning. Despite some ideas that USDA will lower their world wheat production estimate, global stocks are expected to remain large.
Cattle futures are called lower on the open. Boxed beef prices continued to decline yesterday, with choice cutouts down $1.25 and select cuts $1.48 lower. Beef prices have fallen for 15 consecutive days. But losses could be limited by the recovery in the stock market on Tuesday and some short-covering from recent losses. Cash trade is called $1-$2 lower than the $94-$95 business last week, but futures are already at a big discount to cash.
Lean hog futures are called steady to mixed. Light support could come from the steady cash trade on Tuesday. However, pork cutouts were down another 36 cents yesterday. Some packers could slow slaughter due to tightened margins. But short-covering helped support futures on Tuesday, and the market remains at or near technically oversold levels.