Corn futures are called to open steady to 2 cents higher. Overnight trade was 2 cents higher. South Korea’s purchase of 110,000 tonnes of corn for September delivery encouraged corn prices. However, spillover pressure from falling soybean prices is bearish.
Soybeans futures are called to open 19 to 25 cents lower. Overnight trade at was 19 to 25 1/4 cents lower. Soybean prices continue to slide over global economic concerns. The July contract traded was as low as $13.77, hitting a six week low in overnight trade. Long term fundamentals remain bullish for the market.
Wheat futures are called to open mixed. Overnight trade was 2 3/4 to 4 3/4 cents lower at the CBOT, 1/2 cents lower at the KCBT and 1/2 cents lower at the MGE. Wheat prices were trading lower overnight with the CBOT July contract trading as low as $5.92 1/4. Wheat prices are seeing added pressures as corn and soybean markets struggle. Overall, wheat fundamentals are bearish.
Cattle futures are called to open lower. Cash cattle trade picked up late Friday, with reported prices of $120 to $123 in the South and $195 to $197 in the north. However, low beef demand and weak cutout prices are bearish factors for the market.
Lean hog futures are called to open mixed. Look for strength in last week’s pork cutout values to lend support to prices. Pork cut-outs closed above $80, which hasn’t been seen since mid-March. Hog futures are trading up as demand for pork products such as ribs and butts are renewed.
Cotton futures are called to open mixed. Unfavorable weather and a bearish USDA Supply/Demand report are adding pressure to cotton prices. However, export sales to China should encourage prices.