Corn futures are 3 to 6 cents lower on pressure from outside markets.
- Negative outside markets are weighing on corn futures this morning and have resulted in a "risk-off" atmosphere for the commodity world.
- The government is closed for Columbus Day, so there will be no weekly export inspections or crop progress data from USDA today.
- Traders are looking ahead to Thursday's Crop Production Report to see if USDA will further trim the size of the crop.
Soybean futures are 6 to 8 cents lower amid a general "risk-off" attitude.
- The U.S. dollar index is stronger this morning amid concerns about slowed economic growth after the World Bank lowered its Chinese GDP forecasts for 2012 and 2013.
- Traders also expect USDA to raise the size of the soybean crop in its Crop Production Report on Thursday.
- Gulf soybean basis is 2 cents weaker for nearby delivery, signaling supplies are adequate for now as harvest is rapidly progressing.
Wheat futures at all three exchanges are mostly 2 to 3 cents higher amid global crop woes. Some far-deferred futures are mildly weaker.
- Nearby wheat futures are drawing support from concerns about dry weather conditions hurting Australian wheat crops, as well as dry conditions in areas of Russia and Ukraine that raise questions about crop establishment.
- Negative outside markets are limiting buying interest in the wheat market, as strength in the U.S. dollar index raises concerns about the competitiveness of U.S. supplies globally.
- France's ag ministry lowered its wheat crop forecast to 35.9 MMT, but that's still up 5.6% from last season.
Live cattle futures are called to open steady to firmer amid tightening supplies.
- Weekly cattle slaughter was smaller than expected last week, leading to expectations supplies will continue to decline.
- October live cattle are trading at around a dollar discount to the cash market, which is also supportive this morning.
- But buying in live cattle will be tempered by negative outside markets.
- All eyes will be on the boxed beef market early this week for cash clues. Boxed beef values declined on Friday.
Lean hog futures are expected to be mixed, with buying limited by negative outside markets and the premium nearby futures hold to the cash market.
- Strength in the U.S. dollar index is leading to a "risk-off" attitude in the commodity markets this morning.
- The cash hog market is expected to be mostly steady this morning. Most plants are still in need of additional supplies, but say the seasonal increase in market-ready hogs will keep them from raising bids this week.
- Packers are enjoying profitable margins, so they could raise bid if needed.