Corn futures are called 8 to 9 cents lower. Overnight trade at 6:45 am CT was 8 1/4 to 8 3/4 cents lower. Profit-taking and outside market pressure is expected to weigh on the market. Futures hit 30-month highs last week before turning lower. Strength in the dollar and weakness in gold and crude oil overnight are bearish factors for commodity markets. However, losses could be limited by tight ending stocks projections and the need to compete for acreage this spring.
Soybean futures are called 11 to 12 cents lower. Overnight trade at 6:45 am CT was 10 3/4 to 12 1/2 cents lower. The market was pressured overnight by profit-taking, slower demand as China takes a break from purchases during the Lunar New Year, beneficial rainfall for the soybean crop in Argentina and outside market. Strength in the dollar and weakness in gold and crude oil is helping to pressure ag commodities. However, supply/demand fundamentals remain bullish, which could help limit losses.
Wheat futures are called 10 to 14 cents lower. Overnight trade at 6:45 am CT was 13 to 13 3/4 cents lower at the CBOT and 8 1/4 to 9 cents lower at the KCBT. Spillover weakness from other grains and outside markets are expected to weigh on futures. Strength in the dollar is bearish for export demand, which has already been disappointing. However, concern about global supply of high quality wheat should help limit losses. Most of China’s wheat growing areas in the north are suffering from drought.
Cattle futures are called steady to lower. Light cash trade developed on Monday at $105 live, down $1 from last week, and $168 dresses, down $2-$3 from a week ago. The rally in boxed beef prices has stalled, with choice cutouts down 10 cents yesterday. The Cattle on Feed report was slightly bearish as December placements and Jan. 1 cattle on feed numbers were above trade expectations.
Lean hog futures are called steady to higher. Cash market trade was steady yesterday and the 59 cent jump in pork cutouts coupled with tighter supplies of market ready cattle are expected to support cash bids and futures. Gains could be limited by futures moving toward technically overbought levels.
Cotton futures are trading lower at midsession. Profit-taking from the recent strong gains are weighing on the market. Strength in China’s cotton futures and bullish fundamentals helped push futures up the limit yesterday. At 6:30 am CT, March cotton was 136 points lower at 160.58 cents and December was 271 points lower at 111.03 cents.