Corn futures are called 7 to 8 cents higher. Overnight trade at 6:45 am CT was 7 1/4 to 7 1/2 cents higher. Strength in crude oil futures overnight and weakness in the dollar index are supportive factors. Crude oil is higher on hopes that European leaders will come up with a plan for the euro zone debt crisis and encouraging manufacturing data from China. Despite strong harvest progress, farmer selling remains light and cash basis levels are firm. USDA estimated the crop at 65% harvested, up 10% from the ten-year average.
Soybean futures are called 5 to 6 cents higher. Overnight trade at 6:45 am CT was 5 1/4 to 5 1/2 cents higher. The favorable economic news from China is supporting crude oil futures and also the soybean markets. Crude oil is about $2 higher in overnight trade. But gains could be limited by strong harvest progress. USDA estimated harvest at 80% complete, up 5% from the ten-year average. In addition, projections for a record soybean crop in Brazil in 2012 will limit gains.
Wheat futures are called 3 to 5 cents higher. Overnight trade at 6:45 am CT was 3 1/4 to 3 3/4 cents higher at the CBOT, 4 1/2 cents higher at the KCBT and 4 3/4 cents higher at the MGE. Spillover strength from corn and weakness in the dollar overnight are helping support the wheat market. But gains are expected to be limited by the bearish global supply/demand outlook. Winter wheat planning improved to 82% complete as of Sunday, only 2 points behind the ten-year average. Most states are close to the normal planting pace. The first crop rating of the season put winter wheat at 47% good to excellent. The rating is in line with a year ago, but below the long-term average.
Cattle futures are called steady to mixed this morning. Cash market trade is not expected to develop until later in the week. Tight supplies of market ready cattle could support trade, but packer margins remain poor. However, those margins improved some with choice cutouts up 95 cents on Monday. Outside market support could help push higher, but some profit-taking on recent strength is also expected.
Lean hog futures are called steady to lower. Cash market bids are expected to be steady to lower. Pork cutouts were down 22 cents on Monday. Losses could be limited by weakness in the dollar index, which are expected to continue if the euro zone debt crisis plan continues to progress. Export demand has been strong, thanks in large part to Chinese buying.
Cotton futures are slightly higher this morning. Strength in gold and crude oil futures are helping trigger some fund buying in cotton futures, although buying interest is limited for cotton. At 6:35 am CT was 8 points higher at 98.02 cents.