Corn futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/4 to 7 cents higher. The market is higher on continued talk of yield losses in the corn crop in Argentina due to hog and dry weather over the growing season. Gains are also being driven by weakness in the dollar index and firm crude oil futures trade overnight.

Soybean futures are called 15 cents higher. Overnight trade at 6:45 am CT was 15 to 15 1/2 cents higher. The strong gains are being driven by concern about soybean crop problems in South America. Crop stress is expected to develop again in southern Brazil and yield potential has been hurt by hot and dry weather in Argentina this growing season. Export demand has been strong recently, with China being a large customer. However, demand could slow the next couple of weeks due to the lunar New Year holiday there.

Wheat futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/2 to 7 1/2 cents higher at the CBOT, 6 cents higher at the KCBT and 6 to 6 1/2 cents higher at the MGE. Weakness in the dollar index, strength in corn and soybeans and short-covering are supporting wheat futures overnight. The improved pace of export sales have helped turn wheat prices higher. Recent losses in wheat prices and the weakness in the dollar index have helped make U.S. wheat more competitive on the global market.

Cattle futures are called steady to higher. Spillover buying and recent strength in the cash market will be supportive. Boxed beef prices were higher on Friday with choice cutouts up 46 cents and select cuts up 32 cents. However, gains could be limited by concern about the deeply negative packer processing margins that could lead to decreased slaughter.

Lean hog futures are called steady to higher. Pork cutouts were up 87 cents on Friday and cash markets are called steady to firm. Packers are believed to be short-bought and in need of hogs. USDA reported pork in storage as of the end of December at 475.8 million pounds. Traders were expecting a small increase, but instead stocks fell 3.3 million pounds.

Cotton futures are trading slightly higher this morning. Outside market strength is providing some support as the dollar index is lower while Dow Jones futures are higher. At 6:35 am CT, March cotton was 25 points higher and July was 17 points higher.