Corn futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/2 to 3 3/4 cents lower. Crop condition ratings held unchanged last week at 62 percent good to excellent despite the heat in the Corn Belt. Rainfall helped much of the crop deal with the hot temperatures. Further strength in the dollar overnight is also a bearish factor. However, losses are being limited by some concern that more hot weather in the Midwest will hurt yield potential in southern areas.
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. Sluggish export demand and outside market pressure are weighing lightly on futures. The dollar is higher and crude oil is trading lower overnight. But losses are being limited by soybean crop condition ratings declining 2 points last week to 60 percent good to excellent. Crop ratings are right on the ten-year average for this week.
Wheat futures are called 1 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 cents lower at the CBOT, 2 1/2 cents lower at the KCBT and 3/4 to 1 cent lower at the MGE. Further strength in the dollar overnight and weakness in corn are expected to weigh lightly on the market. Strong competition for export sales is a bearish factor. Weekly export inspections released on Monday were below trade expectations. Losses are expected to be limited by concern about spring wheat production and ideas that continued hot and dry weather in the southern Plains could put some HRW wheat area in jeopardy this fall if the current weather pattern continues.
Cattle futures are called steady to mixed. The cash market is not expected to develop until later in the week. Showlists are mixed, but hot weather in the southern Plains could encourage marketings there. Futures have rallied recently, but concern about beef demand could limit gains. Boxed beef prices have turned lower recently and ideas are that hot weather over much of the U.S. has slowed beef consumption.
Lean hog futures are called steady to higher. Pork cutouts were up 73 cents on Monday, hitting a record high level for the fifth consecutive days. Strength in pork has helped support cash trade as well. However, gains are expected to be limited by the futures market already rallying and on some concern that high pork prices could slow domestic demand.
Cotton futures are trading lower this morning. Cotton closed lower on Monday amid technical buying and the likely debt deal agreement with U.S. lawmakers. However, concern remains about demand. Crop condition ratings remain very poor, but they did improve 1 point to 30 good to excellent. At 6:40 am CT, December cotton was 188 points lower.