Corn futures are called 5 cents lower. Overnight trade at 6:45 am CT was 5 cents lower. With little new fundamental news available, the market is left to watch outside markets for direction. Strength in the dollar index and weakness in Dow Jones futures and crude oil are weighing on corn. The euro-zone debt crisis remains a concern as reports over the weekend offered caution about further bailouts of European countries.
Soybean futures are called steady to 1 cent lower. Overnight trade at 6:45 am CT was 1/4 to 1/2 of a cent lower. Light technical selling and outside market pressure are weighing on futures trade. Futures are near technically overbought levels. Strength in the dollar index and losses in the Dow Jones futures and crude oil are bearish for commodity markets. Losses are expected to be limited recent strength in export demand. Weekly export inspections to be released this morning are expected to be bullish.
Wheat futures are called 4 to 6 cents lower. Overnight trade at 6:45 am CT was 4 1/2 to 5 1/2 cents lower at the CBOT, 3 3/4 to 5 cents lower at the KCBT and 4 1/4 to 6 1/4 cents lower at the MGE. Strength in the dollar index and the bearish global supply/demand situation for wheat is weighing on the market. USDA's acreage forecast last week for a big increase in spring wheat acreage remains an underlying bearish factor.
Cattle futures are called steady to higher. Cash trade last week was steady in the South at $128-$129 live, although it was down $2-$3 dressed in the North at $200-$201. Packer margins have improved due to recent strength in boxed beef prices, but they remain negative. The Cattle on Feed report was neutral to friendly. Placements came in at 97.8% of a year ago, slightly below expectations. Marketings were higher than expected. February 1 cattle on feed totaled 102.1% of a year ago. Expectations were for cattle on feed to be slightly higher at 102.5%.
Lean hog futures are called steady to mixed. Cash markets are expected to near steady. Pork cutouts were up 21 cents on Friday, but packer margins are not favorable. Ideas of increasing seasonal demand and tightening hog supplies will limit losses. However, outside markets could provide some pressure as the dollar index is higher and the stock market is expected to open lower.
Cotton futures are trading higher this morning. Report of mill buying and strong weekly export sales reported last week are providing the market some support. At 6:40 am CT May was 46 points higher and December was 54 points higher.