Corn futures are called 5 to 6 cents lower. Overnight trade at 6:45 am CT was 4 3/4 to 5 1/2 cents lower. USDA released a bullish Crop Progress report on Monday afternoon, but strength ahead of the report led to some profit-taking overnight. Corn planting progress was estimated at 9% complete as of Sunday, down from the five-year average of 23% and the 46% at this time last year. Forecasts call for more rainfall in the southern and eastern Corn Belt this week, which will further delay planting progress.
Soybean futures are called 9 to 10 cents lower. Overnight trade at 6:45 am CT was 9 1/2 to 10 1/4 cents lower. Strong gains in corn and wheat on Monday helped pull soybeans higher, although the soybean market was reluctant. Concerns about cancellations in sales to China and ideas that the Chinese government could raise interest rates to slow food inflation are bearish factors for old-crop. New-crop months are lower on ideas that corn planting delays and more wet forecasts could force some acreage intended for corn to be planted to soybeans.
Wheat futures are called 5 to 7 cents lower. Overnight trade at 6:45 am CT was 7 to 7 1/2 cents lower at the CBOT, 5 3/4 to 6 cents lower at the KCBT and 4 to 4 1/4 cents lower at the MGE. Light profit-taking from the strong gains on Monday are weighing on the market. How3ever, bullish fundamental news is helping limit losses. Drought continues to deteriorate the winter wheat crop conditions. Good to excellent rated wheat fell to 35% from 36% the previous week and very poor to poor ratings increased to 40% of the crop versus 38% the previous week. Cool and wet weather in the northern Plains continues to slow planting progress. Only 6% of the crop is seeded compared to the five-year average of 25% and 39% at this time last year.
Cattle futures are called mixed on the open. Sharp losses on Monday could lead to some short-covering this morning. Fund selling pressured prices on Monday. However, boxed beef prices were firm on Monday, with choice cutouts up 52 cents and select cuts up 43 cents. Packer margins are poor and some cash trade developed at $117 in Texas, down $2 from last week. The lower cash trade should already be priced into futures.
Lean hog futures are called lower this morning. Cash trade was down about $1.50 on average yesterday and pork cutouts were 51 cents lower. Uncertainty about domestic demand given the high price of pork and high gas prices remain bearish factors. However, tight supplies of market ready hogs and expectations for some improvement in domestic demand seasonally should help limit losses.
Cotton futures are trading strongly lower this morning. Old-crop months are being pressured by concern about export cancellations and big crops coming available in Australian, Brazil and Argentina. New-crop is lower as well despite drought in Texas that could threaten crop production. Cotton planting is 13% complete compared to the five-year average of 16%. At 6:30 am CT, July cotton was 248 points lower and December was 334 points lower.