Corn futures are called steady to mixed. Overnight trade at 6:45 am CT was steady to 1/4 of a cent higher. The market was higher overnight on outside market strength, but gains have since eroded. Dow Jones futures are higher and the dollar index lower again overnight. Export demand is expected to improve following the recent drop below $6 per bushel. So far there has not been any indication of a big increase in export sales.
Soybean futures are called 3 to 5 cents higher. Overnight trade at 6:45 am CT was 2 1/2 to 4 1/2 cents higher. Follow-through buying from the gains on Monday is supporting the market as futures rebound from 13-month lows set last week. Outside markets are supportive as Dow Jones futures are trading higher overnight while the dollar index is lower again. Gains are expected to be limited by generally favorable South American crop weather and increasing soybean production estimates for Brazil and Argentina.
Wheat futures are called 2 to 3 cents higher. Overnight trade at 6:45 am CT was 2 1/4 to 3 1/4 cents higher at the CBOT and 1 3/4 cents higher at the KCBT. Weakness in the dollar overnight is helping to push wheat markets higher overnight. However, gains are expected to be limited by sluggish export demand. Weekly export inspections reported on Monday were disappointing and the U.S. continues to lose export market share to cheaper wheat from the Black Sea region.
Cattle futures are called steady to mixed. Choppy futures trade is expected as the cash market is not expected to develop until later in the week. New showlists distributed this week are mostly larger and with lower beef prices, cash trade could turn lower this week. Packer margins remain negative. However, outside markets could help limit losses are pull some deferred contracts higher.
Lean hog futures are called steady to higher. Pork cutouts were up 70 cents on Monday and the tone in the cash market is expected to be steady to firm. Favorable packer margins and rising pork prices should continue to support the cash market as market ready hog number are likely to peak soon.
Cotton futures are trading lower this morning. Outside markets remain a supportive factor, but gains on Monday faded into the close. Losses are expected to be limited by strength in Dow Jones futures and weakness in the dollar index overnight. At 6:35 am CT March futures were trading 42 points lower.