Corn futures are expected to open 1 to 5 cents lower. Corn prices were lower in overnight trading by the declines were pretty modest. Another rain system is moving through the Corn Belt and conditions are very favorable for early season corn development. The value of the dollar also rose in overnight trading adding pressure to commodity markets. Developments in other outside markets also had effects on the corn market.
Soybean prices are called 6 to 10 cents lower. The July soybean contract fell below the $15 mark in overnight trading. With little new news to move the market noncommercial long liquidation lead to lower soybean prices. The soybean market has been in a huge uptrend since mid-December, with the July contract rising more than $3.50. Noncommercial traders hold huge net-long positions which could lead to a sell-off if bearish news takes center stage.
Wheat futures prices are expected to open 6 to 9 cents lower on Wednesday. Futures prices were 5 to 11 cents lower overnight. Prices are being weighed down by good weather and expectations for good yields. Wheat prices will also see added pressure from increases in the US dollar. Monday’s Crop Progress Report showed 54% of the winter wheat crop headed, well ahead of normal and the crop is in good condition. The day one report from the annual winter wheat crop tour reports an average estimated yield of 53.6, 13.6 bushels higher than the previous year at 40 bushels per acre.
Cattle futures prices are expected to open steady to 40 cents lower on Wednesday. Cattle prices have been in a steep downtrend since late February, but they have bounced a little the last few days. Boxed beef prices rose on Tuesday and processing margins are positive. Cash trade is expected to be steady to $1 lower this week, but is not likely to develop until Thursday or Friday. Tuesday’s boxed beef prices should limit losses, as choice was up 14 cents at $190.47 and select was 62 cents higher at $186.46.
Hog prices are expected to open steady to 50 cents lower on Wednesday. Cash hog prices were lower on Tuesday and the cutout also declined. Cash bids for hogs are expected to start the day on Wednesday steady to lower. The hog futures have been in freefall since late February and the market is oversold. Short covering could cause a price correction in the market, but so far there are few reasons for traders to close-out their positions.
Cotton prices are forecast to open 10 to 40 points lower. Cotton prices managed a modest gain on Tuesday, but traded modestly lower overnight. Data showing stronger than expected manufacturing activity in the U.S. and China were supportive for the cotton market and more wrangling in India over cotton export policy added to the uncertainty. Continued dry weather across the Southeastern U.S. is increasingly worrisome to people involved in the cotton market. Strength in the dollar overnight put some pressure on cotton prices.