Corn futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 3/4 of a cent to 2 1/2 cents lower. Choppy trade is likely ahead of the Supply/Demand report that will be released on Friday morning. The report is expected to show a decline in ending stocks. Weekly export sales to be released this morning could provide direction. Pre-report trade estimates range from 24-39 million bushels. Sales need to be just over 26 million bushels to remain on pace to reach USDA’s export forecast.
Soybean futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 1 1/2 to 2 cents lower. The market is slightly lower following the gains on Wednesday. Traders are gearing up for the Supply/Demand report which is expected by the trade to show ending stocks near 160 million bushels, which is very tight historically. Strong export demand will be an underlying supportive factor. The weekly export sales report this morning is expected to be in the 26-37 million bushel range.
Wheat futures are called 4 to 5 cents higher. Overnight trade at 6:45 am CT was 4 3/4 to 5 1/2 cents higher at the CBOT, 5 1/2 cents higher at the KCBT and 4 1/4 cents higher at the MGE. Futures were firm overnight amid continued concern about the dry conditions in the western Plains and the poor condition of the winter wheat crop as it goes into dormancy. Few changes are expected for wheat in the Supply/Demand report for the U.S., but revised global numbers could influence trade. Export sales have been rather sluggish recently. Weekly export sales to be reported this morning are expected to be 15-24 million bushels.
Cattle futures are called steady to mixed as traders wait for the cash market to develop. Feedlots are holding out for higher bids, but packers have so far resisted as processing margins are poor. Outside markets are mixed overnight as strength in Dow Jones futures is supportive while further strength in the dollar is bearish.
Lean hog futures are called steady to higher. National average cash prices were up about $1.50 on Wednesday as packers are filling aggressive slaughter plans. With cold and snow in the forecast for the Midwest this weekend, traders are working on hog needs for early next week as well.
Cotton futures are trading lower this morning. Traders are positioning ahead of the Supply/Demand report due out on Friday morning. Weekly export sales could influence trade this morning. Trade expectations range from 300,000-400,000 bales. At 6:30 am CT, March was 76 points lower at 131.19 cents and May was 92 points lower at 123.28 cents.