Corn futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 1 1/4 to 2 1/4 cents lower. The market is expected to be choppy as traders look for direction. Outside markets are mostly bearish as the dollar index is trading higher and Dow Jones futures lower overnight. Weather forecasts call for some rainfall in Argentina, but yield potential in the corn crop has already been lowered.
Soybean futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/4 to 4 1/4 cents lower. The lack of outside market support and some improvement in forecasts for crop weather in South America are weighing on the market. The dollar index has rebounded slightly overnight and the stock market is expected to open a little lower. Weekly export sales will be released this morning. Shipments are expected to come in above the pace needed to reach USDA's export forecast.
Wheat futures are called steady to mixed. Overnight trade at 6:45 am CT was 1/4 of a cent lower to 3/4 of a cent higher at the CBOT, steady to 1/4 of a cent higher at the KCBT and steady to 1 1/2 cents higher at the MGE. Sluggish export demand and bearish global supply and demand fundamentals are weighing on the market. Export shipments need to be nearly 18 million bushels or better to stay on pace to reach USDA's export forecast, but last week they were only 7.2 million.
Cattle futures are called higher on the open. Cash trade developed late on Thursday at $202-$205 dressed in Nebraska, up $4-$7 from the previous week. Cash trade in the South was mostly $126 live, up $23 from the previous week. The jump in cash trade will be supportive. Otherwise, the market will be influenced by positioning ahead of the Cattle on Feed report due out after the close this afternoon.
Lean hog futures are called steady to mixed. Pork cutouts were down 56 cents on Thursday and cash markets were mostly steady as packers have needs covered into next week. Spillover strength is expected from cattle, but gains will likely be limited for lean hog futures. There is concern that the rally in pork prices is running out of steam.
Cotton futures are trading slightly lower this morning. The market will be watching the weekly export sales report due out this morning for further direction. At 6:45 am CT, March futures were trading 28 points and July was 34 points lower.