Corn futures are called 10 to 11 cents lower. Overnight trade at 6:45 am CT was 10 3/4 to 11 cents lower. The futures market is giving back much of the gains posted on Monday. Bearish short-term momentum and outside market pressure pushed prices lower overnight. Strength in the dollar and weakness in crude oil and gold have helped trigger the losses.
Soybean futures are called 25 to 30 cents lower. Overnight trade at 6:45 am CT was 26 to 28 3/4 cents lower. After posting strong gains on Monday, the market sold-off again overnight. The rally in the dollar and weakness in crude oil and gold have triggered some fund selling. Fundamentals remain bullish as export demand remains strong and USDA is projecting tight ending stocks this crop year.
Wheat futures are called 6 to 9 cents lower. Overnight trade at 6:45 am CT was 8 to 9 1/4 cents lower at the CBOT, 5 3/4 to 6 1/4 cents lower at the KCBT and 4 3/4 to 5 3/4 cents lower at the MGE. Sluggish export demand, strength in the dollar and spillover pressure from corn and soybeans are pressuring wheat trade. Export shipments continue to run below the pace needed to reach USDA’s export forecast and the rally in the dollar will make U.S. wheat less competitive on the global market. Winter wheat condition improved slightly to 46% good-to-excellent, up 1 point from the previous week.
Cattle futures are called steady to higher. Cash trade is expected to be steady to $1 higher than the $98 trade last week. Boxed beef prices were higher on Monday, with choice cutouts up 61 cents and select cuts up $1.04. Gains will be limited by generally larger showlists this week. Trader will also be cautious ahead of the Cattle on Feed report, which is due out Friday afternoon.
Lean hog futures are called steady to higher. Cash prices were lower on Monday, but in light trade. Packer interest is expected to pick up this week as margins remain favorable. Pork cutouts were up 32 cents on Monday. But gains will be limited by futures premium to the cash index.
Cotton futures are trading lower this morning. Cotton futures rebounded from early losses on Monday to close mixed on reported mill buying. However, futures turned lower again overnight on concern about efforts in China to slow their economic growth. Cotton prices have pulled back strongly in China. At 6:30 am CT, December cotton was 220 points lower at 136.55 and March was 174 points lower at 132.46 cents.