Corn futures are trading slightly lower this morning. Corn futures are trading relatively quiet and slightly below unchanged. With the dollar index trading higher and continued pressure from the soybean market, prices could give way and turn lower. Neutral to bearish export inspections due to sluggish demand for U.S. corn is expected to bearish for prices as well.
Soybean futures are trading 15 cents lower this morning. Front month (Nov) contract plunged during the overnight session, trading down about 31 cents on technical selling and private estimates for higher than expected soybean production. Speculation that Chinese demand for the oilseed is beginning to slow down is also weighing on futures prices.
Wheat futures are trading 3 to 9 cents lower this morning. Although wheat futures are trading lower at this hour, the market continues to be supported by Russian inflation worries. News began to circulate late last week that Russia may be forced to limit grain exports if their domestic prices continue to rise as a means to limit inflation. Traders and analysts will continue to key a watchful eye out for more developments.
Live cattle futures are called to open higher this morning. Last Friday’s cattle on feed report is expected to be price friendly for the market. The report showed August placements down approximately 11 percent from the previous year which exceeded trade expectations of a 7 to 8 percent decline. Cash trade is expected to be steady this week.
Lean hog futures are called to open mixed this morning. Prices should see initial pressure from a bearish cold storage report. Pork stocks were reported at 580.8 million pounds, 5.6% higher than the previous month and 31% higher than the previous year. However, expectations for continued cash market strength should draw buying interest.
Cotton futures are trading mostly lower this morning. Cotton futures are lower this morning on follow through selling and overwhelmingly bearish fundamentals. News that Indian cotton production may be as large as the previous year due to late but timely monsoon rains is also pressuring futures.