Corn futures are called 5 to 6 cents lower. Overnight trade at 6:45 am CT was 5 1/2 to 5 3/4 cents lower. Profit-taking and long liquidation continued to weigh on futures overnight. Outside markets are also bearish as the dollar is higher while crude oil is lower. Weather concerns for the Argentine corn crop have eased some as temperatures have moderated and as rain is expected over the next couple days. However, production potential has already been damaged by the weather.


 


Soybean futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 1 1/2 to 3 1/4 cents lower. Losses in corn and outside markets are expected to weigh lightly on the futures market. Strength in the dollar and weakness in crude oil overnight could keep agricultural commodities on the defensive following the broad-based sell-off in commodities yesterday. However, losses are expected to be limited by commercial buying, which help limit losses on Tuesday as well.


 


Wheat futures are called 7 to 11 cents lower. Overnight trade at 6:45 am CT was 10 1/2 to 11 cents lower at the CBOT, 7 1/2 to 8 1/4 cents lower at the KCBT and 6i 3/4 cents lower at the MGE. Slow export demand and strength in the dollar is expected to weigh on futures. The Canadian Wheat Board raised its 2010/11 grain export target for the third time since this summer, although there remains concern about a shortage of high quality milling wheat globally. Losses should also be limited by concern about the HRW crop in the western Plains due to dryness. With much of the snowcover gone, the crop is vulnerable to a cold snap.


 


Cattle futures are called steady to mixed. Strength in boxed beef prices will be supportive. Choice cutouts were up $1.71 and select cuts were up $1.16 on Tuesday. There is also talk of a storm moving through the Plains next week that could hurt feedlot performance. But gains will be limited by follow-through selling.


 


Lean hog futures are called steady to mixed. Short-covering from recent losses and stabilizing cash markets could provide some support. Packer margins remain tight and pork cutouts were down 41 cents on Tuesday. Despite recent losses, futures remain at a big premium to the cash index.


 


Cotton futures are trading higher this morning. The market turned higher into the close yesterday despite a broad-based sell-off in most commodities on Tuesday. Concern about tight global cotton supplies remains a bullish factor. At 6:30 am CT, March cotton was 58 points higher at 144.36 cents.