Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/2 to 4 3/4 cents lower. The market is being pressured by light profit-taking from the gains yesterday. There is more talk that China could take additional steps this weekend to tighten monetary policy, which has slowed buying interest. However, generally bullish supply/demand fundamentals and weakness in the dollar overnight should help limit losses.


 


Soybean futures are called 12 to 15 cents lower. Overnight trade at 6:45 am CT was 12 1/2 to 14 1/4 cents lower. The market was pushed lower in overnight trade amid concern that China will take further steps over the weekend to tighten monetary policy. This could slow export demand, which has been running very strong. However, weakness in the dollar overnight and growing concern about dry conditions in some soybean producing areas in Argentina should help limit losses.


 


Wheat futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 3/4 to 3 cents lower at the CBOT, 1 to 3 cents lower at the KCBT and 1/2 to 3/4 of a cent higher at the MGE. Weakness in the dollar overnight and the below average condition of the winter wheat crop are supportive factors. Dry areas of the western Plains remain dry and the winter wheat crop is struggling heading into dormancy. But the market turned mostly lower overnight on spillover weakness from corn and soybeans.


 


Cattle futures are called steady to mixed as traders even positions ahead of the Cattle on Feed report due out after the close. Futures rally on Thursday on fund buying that pushed the February and April contracts to new highs. Cash trade has been mostly steady this week at $98-$98.50. Boxed beef prices had been moving higher, but the turned lower on Thursday with choice cuts down 65 cents.


 


Lean hog futures are called steady to mixed. With most packers having slaughter needs covered, cash trade is expected to be steady to lower today. Pork cutouts were 24 cents higher on Thursday, but packer margins have tightened. Futures premium to cash will limit buying interest today.


 


Cotton futures are trading sharply lower this morning. Front end contracts are down near or at the 6 cent limit. The talk this morning that China will take further steps to tighten monetary policy this weekend has led to heavy speculative selling in cotton. At 6:30 am CT, December was 588 points lower at 128.02 and March was 600 points lower at 123.15 cents.