(Pork Network) – Corn futures are called 2 to 3 cents lower. Overnight trade at 6:45 am CT was 2 1/2 to 3 1/4 cents lower. With little fresh fundamental news available, corn traders are watching outside markets for direction. With Moody’s Investor Services downgrading six European Union countries, outside markets are slightly negative as the dollar index has turned higher. Losses are expected to be limited by strength in the soybean market and the projections for tight U.S. ending stocks this marketing year.
Soybean futures are called 3 to 4 cents higher. Overnight trade at 6:45 am CT was 3 to 3 1/2 cents higher. The market is being supported by follow-through buying from the rally on Monday and commercial buying. The March contract was able to rally to another high for the move overnight. Gains are expected to be limited by the market moving to technically overbought levels. In addition, strength in the dollar following the news overnight that six European Union countries were having their credit ratings lowered by Moody’s Investor Services will limit rally attempts.
Wheat futures are called 3 to 5 cents lower. Overnight trade at 6:45 am CT was 3 3/4 to 4 1/2 cents lower at the CBOT and 2 1/2 to 3 cents lower at the KCBT. Strength in the dollar index and spillover weakness from corn are weighing on the wheat markets. Sluggish export demand remains a concern although Egypt bought U.S. wheat this week for the first time since June. Gains on Monday were due in part to unknown damage to winter wheat in the northern and central Plains. Any damage from cold temperatures over the weekend are expected to be limited because most areas with the coldest temperatures had snow cover.
Cattle futures are called steady to mixed on the open. Beef sales remain lackluster and although beef prices were up slightly on Monday, packer margins remain deep in the red. Cash trade is not expected to develop until later this week. The recent slowdown in slaughter has coincided with rising carcass weights, indicating that feedlots are becoming less current. This could give packers some bargaining power the next couple of weeks.
Lean hog futures are called steady to mixed. Cash prices were lower on Monday, but pork cutouts were up 25 cents. Packer margins improved yesterday, but remain poor. Ideas that demand should improve seasonally could prompt some short-covering in the futures market unless cash prices are lower again today.
Cotton futures are trading slightly higher this morning. Recent strength in the export market is providing some support. At 6:40 am CT March cotton was 35 points higher and December was 26 points higher.
