Corn futures are called 7 cents higher. Overnight trade at 6:45 am CT was 7 cents higher. The market is rebounding from the losses on Monday due to the dollar index turning lower and on end-of-month short-covering. Crude oil futures were trading solidly higher overnight. Good rains are expected in Argentina this week. The rain will limit late season crop stress, but is likely too late in the season to help salvage much of the lost yield potential.
Soybean futures are called 4 to 5 cents higher. Overnight trade at 6:45 am CT was 4 1/4 to 4 3/4 cents higher. After the strong losses on Monday, futures are rebounding slightly on short-covering at month’s end. The dollar has turned lower while Dow Jones and crude oil futures are trading higher overnight. However, gains are being limited by the rainfall expected in Argentina this week that will benefit the soybean crop and the forecasts for rain in southern Brazil later in the week.
Wheat futures are called 8 to 11 cents higher. Overnight trade at 6:45 am CT was 9 1/2 to 11 cents higher at the CBOT, 8 to 8 1/2 cents higher at the KCBT and 3 1/2 to 4 cents higher at the MGE. The market is being supported by weakness in the dollar index and spillover strength in corn. Commercial buying and short-covering at the end-of-the-month are helping push futures higher. While global supply/demand fundamentals remain bearish due to abundant wheat supplies, there is some concern about winterkill in some of the wheat crop in Russia and the Ukraine over the weekend due to cold temperatures and the lack of sufficient snow cover.
Cattle futures are called mixed on the open. Larger showlists this week and the very poor packer processing margins will limit buying interest. Boxed beef prices were lower on Monday with choice cutouts down $1.25. However, losses could be limited by end-of-month positioning and some short-covering from the losses on Monday.
Lean hog futures are called higher this morning. The 65 cent gains in pork cutout values and the expectation for firm cash trade today will be supportive. Packers appear to be short-bought and although they cut slow slaughter schedules because of poor margins, it appears that some are willing to have firm bids. Weakness in the dollar index overnight will be supportive for commodity markets.
Cotton futures are trading higher this morning. Outside market strength and short-covering at month’s end are supporting prices. The dollar index turned lower overnight while Dow Jones futures are trading higher. March cotton is 75 points higher and May is 74 points higher at 6:35 am CT.