Corn futures are trading 1 cent lower early morning. Corn prices are trading lower as traders take profits and as the market breaks. Yesterday’s crop condition ratings were indeed bullish for corn prices. December corn contract hit a record high during the overnight session after the release of Monday’s crop progress report. USDA pegged new crop corn good/excellent condition rating at 31 percent, down 9 percentage points from the previous week.
Soybean futures are trading 9 to 10 cents lower early morning. Overall, the market remains bullish but prices are trending lower this morning primarily due to profit taking. The market is currently underpinned by drought conditions across the Corn Belt and firm demand for soy products globally. USDA crop progress report was also price friendly for the market, pushing the November contract to a record high of $16.07 per bushel during the overnight session.
Wheat futures are trading mixed early morning. Wheat prices turned lower during the overnight session as corn and soybean prices began to decline, which sparked a round of speculative selling across the wheat markets. The lower dollar index and growing globally concern over Russian wheat production should lend support to futures prices today.
Cattle futures are called to open lower this morning. The market is expected to open under pressure for the second consecutive day on lower boxed beef prices and sluggish cash trade. Cash trade was very slow on Monday with no definitive asking prices. Rising corn prices will also be a negative factor for the market as producers are faced with higher feeding costs.
Lean hog futures are called to open lower this morning. Hog futures are anticipated to open lower on weakening trade in the cash market and soft demand for pork products. Rising temperatures are curbing consumer demand for pork products which is in affect pressuring pork cutout values. The market will also be pressured as grain prices reach record highs, ultimately leading to higher costs of production for producers.
Cotton futures are trading 120 points lower early morning. Improved crop condition ratings are weighing on the market early morning. Cotton’s good/excellent ratio improved by 1 percentage to 45 percent in yesterday’s crop progress report. Speculative selling due to the decline in the grain markets are also pressuring cotton futures.