Corn and wheat called lower on Tuesday

Corn futures are called 6 cents lower. Overnight trade at 6:45 am CT was 6 to 6 1/4 cents lower. The futures market remains in a trading range and after pushing towards the high end of the range last week, futures are lower this morning. The market is looking for USDA to update its crop forecasts later this week and for the reports to show increased corn acreage this spring. Futures are drifting lower despite some outside market support. Reports indicate that Europe has reached a second bailout deal with Greece. The dollar index is trading lower and Dow Jones futures higher overnight.

Soybean futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/2 to 2 cents higher. Commercial buying and recent export business are supporting the futures market. USDA has reported export sales to China in recent daily reporting and last week a delegation from China agreed to large purchases of U.S. soybeans. Outside markets are providing some light support as the dollar index is lower and Dow Jones futures higher. Gains are expected to be limited by weakness in corn.

Wheat futures are called 6 to 7 cents lower. Overnight trade at 6:45 am was 6 to 6 3/4 cents lower at the CBOT, 5 3/4 to 6 1/4 cents lower at the KCBT and 2 3/4 cents lower at the MGE. The market is being pressured by spillover weakness from corn and the lack of bullish news following the extended holiday weekend. However, losses are expected to be limited by weakness in the dollar index and recent reports of increased export demand. Weekly export inspections to be reported this morning could provide some support to futures trade.

Cattle futures are called steady to higher. The sharp jump in cash trade last week will be supportive. Cash trade was generally $5 higher than the previous week at $128-$129. Smaller showlists and strong gains in boxed beef prices on Monday will be supportive, although packer margins remain poor. However, futures are vulnerable to profit-taking with futures at or near contract highs.

Lean hog futures are called steady to mixed. The market could find light support from expectations for steady to firm cash markets. However, weakness in pork cutouts and concern that supplies of pork in cold storage are growing will limit strength and could push some contracts lower.

Cotton futures are trading higher this morning. The market is bouncing back slightly from the profit-taking losses seen last Friday ahead of the extended holiday weekend. At 6:40 am CT, March was 33 points higher and December was 53 points higher.