Corn futures are called mixed on the open. Overnight trade at 6:45 am CT was 2 1/4 to 2 3/4 cents lower in the May and July contracts and 4 1/4 cents higher in the new-crop December. Old-crop futures are expected to be pressured by outside markets. Crude oil and Dow Jones futures were solidly lower overnight while the dollar index was higher. But new-crop futures are finding support from concern about planting delays. Weather forecasts for the Midwest call for frequent rainfall over the next two weeks. Drier and warmer weather will be needed to promote aggressive planting progress.
Soybean futures are called steady to mixed. Overnight trade at 6:45 am CT was steady to 1/4 of a cent higher. Old-crop futures are being limited in overnight trade by outside markets and concern that China could cancel more export sales. Weakness in the crude oil and Dow Jones futures is encouraging fund selling in old-crop. But new-crop could find light support from spillover gains in new-crop corn although buying could be limited by ideas that corn planting delays could lead to more soybean acreage.
Wheat futures are called higher this morning. Overnight trade at 6:45 am CT was 8 1/2 to 9 1/4 cents higher at the CBOT, 11 1/2 to 12 1/4 cents higher at the KCBT and 13 1/4 to 14 3/4 cents higher at the MGE. Freezing temperatures in the HRW wheat belt this weekend will be supportive. While the impact is expected to be minimal, freezing temperatures from northern portions of the Texas Panhandle into Nebraska and Colorado could have damaged some of the crop. The area still is in need of rain. Forecasts call for some changes of rain late this week, but amounts are expected to be light. Flooding in the northern Plains will delay some spring wheat planting. USDA will release crop condition ratings this afternoon. Dry conditions could further deteriorate the crop, although freeze damage will not likely be reflected.
Cattle futures are called steady to lower. Uncertainty about the cash market, weakness in boxed beef prices last week and long liquidation are expected to weigh on futures. Cash trade was down $3-$4 last week and choice cutouts on Friday were down $1.53. Losses in Dow Jones futures overnight indicate weakness in the stock market this morning. However, losses should be limited by improved packer margins and ideas of improving seasonal demand.
Lean hog futures are called steady to mixed. Pork cutouts were 57 cents higher on Friday and supplies of market ready hogs are tightening. Cash trade is expected to be steady to firm to start the week. Pork cutouts are near the all-time high set last August. However, gains could be limited by expected weakness in the stock market and strength in the dollar.
Cotton futures are trading mixed this morning. Light short-covering following the losses on Friday is supporting old-crop contracts. Gains are being limited by export cancelations last week. New-crop is lower on ideas that acreage could beat USDA’s Prospective Plantings number. However, fundamentals remain bullish and should help stabilize the market. At 6:30 am CT, May was 58 points higher and December was 18 points lower.