Corn futures are trading 6 to 7 cents higher. Corn futures displayed a strong rally in the overnight session, with July leading the way. Both old and new crop contracts are trading higher this morning on follow through buying from commercial and non commercial traders. Traders remain concern about weather forecasts calling for rain across the U.S. Corn Belt; this will likely keep prices in check.

Soybean futures are trading 3 to 5 cents lower. The market is still trading on the low side although much improved from yesterday’s losses. Technical selling pressure is currently weighing on prices. Due to the strongly bullish supply/demand fundamentalsof the market losses will be limited. Weekly export sales are expected to be bullish which will lend support to soybean futures.

Wheat futures are trading 2 to 4 cents higher. Spillover support from corn lifted wheat futures overnight. The recent reductions in the Australian wheat production estimates supported prices yesterday. However, global supplies are still reported to be plentiful. Look for the higher dollar index to keep wheat prices in check.

Cattle futures are called to open mixed this morning. After sharp losses on Thursday, the market is expected to open the session mixed. The higher dollar index and expected lower prices in the cash market will weigh on futures. However, spillover support from hogs and trader short covering will lend support. As trade in the cash market picks up, prices are expected to be steady to lower.

Lean hog futures are called to open higher this morning. The market is expected to open on the upside due to improved supply/demand fundamentals. Higher cash prices, firm pork cutout values, increased demand and shrinking supplies will support futures prices. Today’s higher dollar index may pressure the market, but will likely be countered by expectations for 50 cents to $1 higher cash prices.

Cotton futures are trading higher this morning. The market is up on short covering and dry weather forecasts across portions of Texas. Although much of western Texas received favorable rains there are portions that remain dry. Crop stress is a concern and is likely propping up prices. However, market fundamentals remain strongly bearish.