Corn and soybeans to open lower on Wednesday

Corn futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/4 to 2 3/4 cents lower. Technical selling and ideas that USDA will increase its acreage and production forecasts later this week at the Outlook Forum is weighing on the market. Outside markets could add to the weakness as the dollar index is higher overnight. However, further weakness should be limited by the reduced corn crops in South America that have been bullish for U.S. corn export prospects.

Soybean futures are called 6 to 7 cents lower. Overnight trade at 6:45 am CT was 6 to 6 1/2 cents lower. The market is being pressured overnight by technical and fund selling ahead of the USDA Outlook Forum later this week. Recent improvement in export demand and the declining soybean production estimates in South America could encourage increased soybean acreage this spring. Outside markets are also weighing on the market as the dollar index has turned higher overnight.

Wheat futures are called mostly lower. Overnight trade at 6:45 am CT was 2 1/4 to 3 1/2 cents lower at the CBOT, 1 3/4 cents lower at the KCBT while the MGE is 1 1/4 to 2 cents higher at the MGE. Futures are being pressured by commercial and fund selling. Spillover pressure from lower corn trade and strength in the dollar index are weighing on winter wheat markets. Traders are also being cautious ahead of the USDA Ag Outlook Forum. However, losses are being limited by recent improvement in export demand. The MGE is higher on concern about spring wheat crop prospects due to soil moisture deficits in the northern Plains.

Cattle futures are called steady to mixed. Strength in the cash market and recent strength in boxed beef prices will be supportive, but futures trade could be choppy as the market waits to see how this week develops. Choice cutouts were up $2.35 and select were up $2.77 on Tuesday. Choppy futures trade is also expected as traders begin to position for the Cattle on Feed report due out on Friday afternoon.

Lean hog futures are called steady to mixed. Cash market fundamentals are mixed. Pork cutouts were down 39 cents on Tuesday, but the market is looking for seasonal strength in pork demand moving forward. Wholesale demand for Easter ham should pick up now that lent has started.

Cotton futures are trading slightly higher this morning. Positioning ahead of the USDA Outlook Forum later this week is helping futures trade slightly higher, but outside markets are limiting gains. At 6:35 am CT, March cotton was 30 points higher and December was 54 cents higher.