Corn to open lower, soybeans higher on Wednesday

Corn futures are called 3 to 5 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 5 1/2 cents lower. The market is being pressured by light technical selling and strength in the dollar index. New-crop is lower on ideas of increased acreage this spring. Some early corn planting is expected given the recent warm weather over much of the Plains and Midwest.

Soybean futures are called 3 to 4 cents higher. Overnight trade at 6:45 am CT was 3 1/4 to 3 1/2 cents higher. Futures were able to rally to new highs for the move in overnight trade before gains were trimmed. But the market remains supported by strong export demand and the decline in South American production estimates. Dry conditions during the growing season have led to lower production estimates in Brazil and Argentina.

Wheat futures are called 4 to 6 cents lower. Overnight trade at 6:45 am CT was 4 3/4 to 5 3/4 cents lower at the CBOT, 5 to 5 3/4 cents lower at the KCBT and 4 1/2 cents lower at the MGE. Strength in the dollar index, improved weather conditions for the winter wheat crop and for early spring wheat planting, and bearish global supply/demand fundamentals are weighing on the market. Warm weather in the Plains and Midwest will help winter wheat growth, although the crop will be vulnerable to a frost this spring.

Cattle futures are called steady to mixed. Boxed beef prices were lower again on Tuesday with choice cutouts down 98 cents and select cuts down $1.35. However, futures are expected to be choppy as traders wait to see how the cash market develops. Packers are thought to be short-bought while showlists are generally smaller this week. Ideas that warm temperatures will give seasonal grilling demand a boost will be a supportive factor.

Lean hog futures are called steady to higher. The 25 cent gain in pork cutout values and mostly steady bids in the cash market are expected to provide light support. Packers appear to be increased Saturday slaughter schedules as seasonal improvement in demand is expected soon.

Cotton futures are slightly lower this morning. The market has given back the gains made after the announcement by India that it was banning exports due to uncertainty about the ban. Outside markets are applying some light pressure to the market. At 6:40 am CT, May cotton was 13 points lower and December was 31 points lower.


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