Corn futures are called steady to 4 cents higher on Tuesday. Corn futures prices were generally higher in overnight trade. There was no new market moving news. The weekly Crop Progress report was delayed until Tuesday because of a small fire at USDA. The report is expected to show corn planting between 15 percent and 20 percent complete – far above the average level for this early in the season. The export inspections figure released on Monday showed shipments of nearly 43 million bushels, above the number needed for exports to stay on pace to reach the 1.7 billion bushel forecast.
Soybean futures are forecast to open 5 cents to 10 cents higher. Soybean prices bounced back in overnight trade recovering at least part of the ground lost on Monday. The soybean crush data was bullish for old crop soybeans. While export inspections were a little disappointing they were still above the level needed to stay on pace for the current crop year forecast. Weakness in the dollar overnight coupled with gains in the Dow Jones futures will give the market a little boost at the opening Tuesday.
Wheat prices are expected to open 3 cents to 6 cents higher. Spillover effects from the gains in the other crops will give the wheat market a boost in early trading on Tuesday. The weaker dollar is also positive for wheat prices. The weekly Crop Progress report was delayed until Tuesday, but the report is expected to show a rapid spring wheat planting pace and further improvement in the condition of the winter wheat crop. Export inspections were better than expected on Monday.
Cattle prices are called steady to mixed on Tuesday. Cattle futures prices have struggled recently because of weak beef prices. But beef cutout values increased significantly on Monday with choice up $2.75 and select up $3.16. That could give cattle futures a boost in early trading on Tuesday. The big premium of cash over the nearby futures contracts also help to boost futures at the open. Little activity is expected in the cash market on Tuesday with sellers still asking for steady to higher prices and buyers still struggling with dismal processing margins.
Hog futures are called steady to 30 cents higher. We may see a little bounce in hog futures at the open on Tuesday following steep losses in recent trading sessions. The pork cutout did move 84 cents higher on Monday, but they are bouncing off of very low levels. Processing margins remain poor and most processing plants will be closed on Saturday. The increase in hog futures early on Tuesday will be caused at least in part by short covering and will not reflect any turn in market direction. Any long term increase in hog futures will depend on sustained increases in pork prices.
Cotton futures are expected to open higher on Tuesday. Cotton prices posted solid gains in overnight trade with the July contract about 1 cent higher. Drought problems continue in Alabama and Georgia but moisture levels are higher in the Delta and the east half of Texas. Planting is nearly completed in some of the Texas growing areas. Cotton futures have been trending down over the past two months with the December contract falling by about 10 cents per pound. The overall economic news reported on Monday was fairly supportive with retail sales up 0.8 percent in March, following a 1 percent gain in February.