Corn futures are called 3 to 4 cents higher. Overnight trade at 6:45 am CT was 3 1/4 to 3 3/4 cents higher. The market is being supported by rumors that China is buying U.S. corn and outside market support. Strength in crude oil is a supportive factors. However, gains will be limited by generally favorable weather for crop development. Weather forecasts are non-threatening for the next couple of weeks.
Soybean futures are called 5 to 6 cents higher. Overnight trade at 6:45 am CT was 5 1/2 to 6 cents higher. Trade activity is limited for soybeans, but prices were up slightly overnight. Ending stock projections remain tight and with the lower acreage good yields become even more critical. Crop weather is currently favorable for much of the crop and forecasts are non-threatening. However, weather uncertainty for August, the critical time for soybeans, could lead to some weather premium being added to the market.
Wheat futures are called 3 to 7 cents lower. Overnight trade at 6:45 am CT was 5 1/4 to 6 1/4 cents lower at the CBOT, 3 3/4 to 6 3/4 cents lower at the KCBT and 2 1/2 cents lower at the MGE. Recent strength in the dollar and ideas of increased export competition this marketing year is weighing on the market. Russia has recently been been taking market share in the global wheat market. Seasonal harvest pressure is also a bearish factor for winter wheat.
Cattle futures are called steady to mixed as traders wait for the cash market to develop. The market is looking for cash trade to be steady to $1 higher this week as packer are short-bought and need to fill slaughter schedules. Beef prices have been moving modestly higher this week.
Lean hog futures are called steady to higher. Packer margins are poor, but will be improved with the $1.19 increase in pork cutout values. Hog supplies are tightening seasonally and market ready hog numbers are relatively tight. Pork demand over the holiday weekend appears to have been strong. Recent strength in the dollar is bearish for exports, which could limit gains in futures today.