Corn futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 4 1/2 cents lower. The market was pressured overnight by further strength in the dollar and losses in Dow Jones futures. But losses are expected to be limited by positioning ahead of the Supply/Demand report, due out on Friday morning. Trade estimates are for USDA to trim ending stocks to near 800 million bushels, which would be the lowest level in 15 years.
Soybean futures are called 7 to 8 cents lower. Overnight trade at 6:45 am CT was 7 3/4 to 8 1/2 cents lower. Commodity markets were pressured overnight by strength in the dollar and weakness in Dow Jones futures. However, losses are expected to be limited by ideas that USDA’s Supply/Demand report will be fundamentally bullish. Strong demand, primarily from China, is expected to be trimmed by USDA. Trade estimates are for ending stocks to be cut around 20 million bushels to 160 million, which is historically very tight.
Wheat futures are called 10 to 14 cents lower. Overnight trade at 6:45 am CT was 10 1/4 to 11 cents lower at the CBOT, 7 to 8 1/2 cents lower at the KCBT and 10 1/2 to 11 3/4 cents lower at the MGE. Strength in the dollar and sluggish export demand has weighed on futures trade overnight. Profit-taking and fund selling has continued the losses from Tuesday. However, underlying fundamental support is expected from the heavy rainfall in eastern Australia, which will hurt wheat quality, and dry conditions in the western Plains that will continue to hamper winter wheat condition ratings.
Cattle futures are called steady to mixed. Futures turned lower Tuesday on profit-taking and outside market pressure. While strength in the dollar and weakness in Dow Jones futures overnight is bearish, futures are expected to be mixed. Cash trade is expected to be steady to $1 higher from the $103-$104 last week.
Lean hog futures are called steady to mixed. Pork cutouts were up 82 cents on Tuesday, but cash markets are expected to be steady to lower. There is concern that pork demand will slow seasonally as holiday buying is completed. Light volume trade is expected in the futures market today.
Cotton futures are trading lower this morning. Losses have been extended overnight as strength in the dollar is weighing on commodity markets. USDA will release new supply/demand numbers on Friday morning. Little change is expected for the U.S., but world numbers and especially India will be watched. At 6:30 am CT, March was 336 points lower at 127.01 cents and May was 335 points lower at 120.69 cents.