Crop markets to open lower on Wednesday

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Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 to 5 1/2 cents lower. Improved crop condition ratings, non-threatening weather forecasts and outside markets are weighed on futures. Crop conditions improved on point last week to 69% good to excellent, which is slightly above the 68% ten-year average. The dollar is strong and Dow Jones futures lower overnight amid the news that Portugal's credit rating was downgraded to junk status.

Soybean futures are called 9 to 10 cents lower. Overnight trade at 6:45 am CT was 9 1/4 to 10 1/2 cents lower. The sideways trend for corn continues as futures are giving back yesterdays gains overnight. The soybean crop conditions improved 1 point to 66% good to excellent versus the ten-year average of 63%. Sluggish export demand and outside market pressure is also expected to pressure prices as the dollar index is trading higher this morning. 

Wheat futures are called 10 to 13 cents lower. Overnight trade at 6:45 am CT was 10 3/4 to 11 3/4 cents lower at the CBOT, 13 1/2 to 13 3/4 cents lower at the KCBT and 9 3/4 to 11 cents lower at the MGE.   Strength in the dollar and spillover weakness from corn are weighing on wheat futures. Export demand has been relatively so far this new marketing year, but strength in the dollar could slow sales from the U.S.

Cattle futures are called steady to higher. Ideas that beef clearance over the holiday weekend was strong are expected to support prices. Boxed beef prices were firm on Tuesday and cash trade is expected to be firm again this week. Packer demand should be decent as they will be buying cattle for a full slaughter week.    

Lean hog futures are called steady to mixed. Packer margins are poor and pork cutouts were down 33 cents on Tuesday. However, cash trade is expected to stabilize as packers bids for hogs to fill slaughter needs into next week. Futures discount to cash and ideas that pork sales over the holiday weekend were strong will be supportive factors.



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