Corn futures are called 5 to 6 cents higher. Overnight trade at 6:45 am CT was 5 to 5 1/2 cents higher. Planting delay concerns and outside markets are supporting the market. Nationally, corn planting jumped to 63% complete compared to the five-year average of 75%. However, delays remain a concern in the eastern and northern Corn Belt. Firm crude oil and gold prices overnight will provide some light support although light strength in the dollar is bearish.
Soybean futures are called 4 to 7 cents higher. Overnight trade at 6:45 am CT was 4 1/4 to 6 3/4 cents higher. The market was able to rebound from losses on Monday in overnight trade. Soybean planting delays are somewhat supportive, although progress is not far below average. Planting is 22% nationally compared to the five-year average of 31%. Outside markets could influence trade. Crude oil and gold were higher overnight, which could contribute to the market strength. But if the dollar were to strengthen today after small gains overnight, strength in soybeans could be limited.
Wheat futures are called steady to 3 cents lower. Overnight trade at 6:45 am CT was steady to 2 1/4 cents lower at the CBOT, 2 1/2 to 3 1/4 cents lower at the KCBT and 3/4 to 3 1/4 cents lower at the MGE. Despite the poor conditions of the winter wheat crop and spring wheat planting delays, wheat futures were lower overnight. Conditions deteriorated last week and winter wheat ratings are some of the worst on record. The crop was rated 44% poor to very poor compared to 42% the previous week. Poor conditions for winter wheat is not a new story, so traders may be waiting for harvest reports before the market can find support again. Spring wheat is only 36% planted versus the five-year average of 76%.
Cattle futures are called higher on the open. Futures are expected to see a short-covering bounce following the strength in boxed beef prices yesterday. Choice cutouts were up $2.73 and select cuts were $1.14 higher. However, gains in futures could be limited by ideas that beef prices are just getting a temporary boost by wholesale buying ahead of Memorial Day. Cash trade is expected to be lower again this week as showlists are generally larger.
Lean hog futures are called higher this morning. Strength in pork cutout values and the firm tone in the cash market so far this week will be supportive. However, gains could be limited by concern by traders that seasonal strength in pork prices will be limited and that prices could slip once wholesale buying for Memorial Day weekend is completed.
Cotton futures are trading mixed this morning. Old-crop is higher again on the potential for a short-squeeze when the July contract becomes deliverable. New-crop is lower on profit-taking and planting progress near the average pace. At 6:30 am CT, July was 144 points higher while December was 75 points lower.