Corn futures are called 1 cent lower. Overnight trade at 6:45 am CT was 1 to 1 1/2 cents lower. Light profit-taking from the gains on Monday is weighing lightly on the market despite further weakness in the dollar overnight. The market is expected to be choppy today with little fresh news to provide direction. Uncertainty about the proposed Tax Bill and the level of a potential extension of the ethanol tax credit will limit gains.


 


Soybean futures are called 3 to 4 cents higher. Overnight trade at 6:45 am CT was 2 3/4 to 3 3/4 cents higher. Strong demand for soybeans and further weakness in the dollar overnight is providing some support for the soybean market. The market was up strongly on Monday, but there has been light follow-through buying. Continued dryness in Argentina is providing support as soybean crop prospects are being lowered.


 


Wheat futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 4 1/4 cents lower at the CBOT, 3 1/4 cents lower at the KCBT and 2 1/4 cents lower at the MGE. Sluggish export demand and some light profit-taking are weighing on futures trade. However, losses will be limited by further weakness in the dollar overnight. Dry weather in the western Plains will continue to be an underlying supportive factor. USDA’s increased U.S. and global ending stocks estimates on Friday will be an underlying bearish factor.


 


Cattle futures are called steady to higher. Spillover buying from Monday and the $1.06 increase in choice cutouts will provide support. Cash trade is currently expected to be near steady with last week. Showlists are larger, but the jump in beef prices will improve packer margins. Gains will be limited by concern that seasonally slow wholesale beef demand will limit strength in the beef market.


 


Lean hog futures are called steady to mixed. Weakness in the cash market on Monday will limit buying interest in futures this morning. Concern that pork prices could turn lower on slow wholesale pork demand through the end of the year will also be a bearish factor. But further losses in the dollar and expected gains in cattle could provide the futures market some support.


 


Cotton futures are sharply higher this morning. Speculative buying continues to be supportive. On Monday, China only raised reserve requirements for banks instead of benchmark interest rates. This was seen as bullish. The dollar index is trading lower again overnight. At 6:30 am CT, March was up the 500 point limit at 145.98 cents and May was 499 points higher at 138.22 cents.