Corn futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 1/4 to 1 cent lower. The fast pace of planting and outside markets are expected to weigh on the market. USDA pegged corn planting at 68% complete as of Sunday, beating the previous record of 63% and well above the five-year average of 40% for this time of year. Continued strength in the dollar and weakness in crude oil overnight will also be a bearish factor. But losses could be limited by short-covering from recent losses.
Soybean futures are called 1 cent lower. Overnight trade at 6:30 am CDT was 1/2 to 1 1/4 cents lower. The strong early pace of planting and outside markets are expected to pressure futures lightly. USDA pegged soybean planting at 15% complete as of May 2, beating the five-year average of 8%. The rise in the dollar and weakness in crude oil will pressure prices. Rising production estimates for South America and declining demand for U.S. supplies will be an underlying bearish factor. Losses could be limited by short-covering following recent losses.
Wheat futures are called 2 to 3 cents lower. Overnight trade at 6:30 am CDT was 2 to 3 cents lower at the CBOT, 1 1/2 cents lower at the KCBT and 1 3/4 cents lower at the MGE. Strength in the dollar, strong winter wheat conditions and good spring wheat planting progress will weigh on the market. USDA pegged winter wheat good to excellent ratings at 68%, down 1% from the previous week but well ahead of the 47% at this time last year. Spring wheat planting was 60% complete as of Sunday compared to the five-year average of 47%. However, the market remains vulnerable to short-covering rallies.
Cattle futures are called steady to higher on ideas of firm cash trade this week. Beef prices were firm on Monday and short-bought packers are expected to be forced to pay steady to firm prices for cattle this week. Showlists are smaller this week while packer margins remain strong.
Lean hog futures are called steady to higher. Cash trade was up $1.50 on average yesterday and steady to firm trade is expected again today. Pork cutouts were up 49 cents yesterday, helping to keep packer margins favorable. Fund and commercial buying are helping to push futures back toward contract highs.