Crop markets trade lower overnight

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Corn futures are called 5 cents lower. Overnight trade at 6:45 am CT was 5 1/4 cents lower. Futures trade continued lower overnight. The dollar index was higher again overnight as concern over the euro-zone debt crisis has spread to other countries. Losses are expected to be limited by commercial buying on the breaks. Weekly export sales could provide some direction this morning. Trade expectations range from 14-24 million bushels.

Soybean futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/2 to 5 cents lower. The market was trading lower overnight in light volume. Strength in the dollar index is a bearish factor. The rumors of export business with China had been supportive for soybeans before prices setback on Wednesday. The recent break in prices is expected to have spurred export demand. USDA will release a new weekly export sales report this morning. Trade expectations range from 18-26 million bushels.

Wheat futures are called 2 to 4 cents lower. Overnight trade at 6:45 am CT was 2 to 3 1/4 cents lower at the CBOT, 1 1/2 to 3 cents lower at the KCBT and 4 cents lower at the MGE. Continued strength in the dollar index is a bearish factor overnight. Global supply/demand fundamentals remain bearish and export demand for U.S. wheat is sluggish. The U.S. continues to lose market share to cheaper wheat in the Black Sea region. Trade expectations for the weekly export sales report this morning range from 13-17 million bushels.

Cattle futures are called steady to higher on the open. There is some optimism that cash trade will hold steady or even be slightly higher this week due to strength in beef prices this week. Choice cutouts were up another $1.20 on Wednesday. However, due to poor margins packers have slowed slaughter, which could limit cash trade this week.

Lean hog futures are called steady to mixed. The cash market and pork cutout values appear to be stabilizing. Pork cutout values were up 8 cents on Wednesday and losses in the cash market were limited. Slaughter weights in Iowa/s. Minnesota were down slightly last week, which could indicate a seasonal top. Only limited cash trade is expected the rest of the week as many packers have needs cover for this week and much of next week’s holiday shortened slaughter schedule.

Cotton futures are trading narrowly mixed this morning. The market has turned choppy as traders wait for the weekly export sales report to see if China was again a large buyer of U.S. cotton. At 6:30 am CT, December cotton was 15 points higher.



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