Corn futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 3/4 to 2 cents higher. The market was able to bounce slightly overnight as traders gear up for the USDA reports due out on Wednesday morning. Pre-report trade estimates are for a slightly smaller corn crop and strong domestic demand to help trim the ending stocks estimates. Outside markets were also supportive overnight as the dollar index was lower while Dow Jones futures traded higher.
Soybean futures are called 7 to 8 cents higher. Overnight trade at 6:45 am CT was 7 3/4 to 8 cents higher. Short-covering is expected to support the market ahead of the USDA reports due out Wednesday morning following the losses on Monday. Slow export demand and large soybean crop production estimates for Brazil have been a weight on the market recently. The market is not expecting USDA to change the production estimate much, but an increase in ending stocks is anticipated.
Wheat futures are called steady to mixed. Overnight trade at 6:45 am CT was 1 1/4 to 2 cents higher at the CBOT, 2 1/2 to 3 cents lower at the KCBT and unchanged at the MGE. Choppy trade is expected in wheat ahead of the USDA reports due out Wednesday morning. Weakness in the dollar and light strength in corn is helping support the CBOT. However, the KCBT is lower amid some recent beneficial rainfall in the southern Plains including parts of Kansas. USDA could trim their production forecast following a resurvey of spring wheat producers, but the market will also keep an eye on the export projection. U.S. wheat has struggled recently to stay competitive with cheaper wheat from the Black Sea region.
Cattle futures are called steady to mixed. Cash trade is not expected to develop until later in the week as poor packer margins could encourage a slower slaughter schedule. Cash markets were generally firm last week and market ready supplies remain tight. But choice cutouts were up strongly on Monday, helping to improve the still poor packer margins.
Lean hog futures are called steady to mixed. The weak tone continues in the cash market, but a least pork cutouts were able to turn higher on Monday. After declining to five month lows last week, pork prices were up 85 cents on Monday. The seasonal increase in hog supplies and lower cutouts have pressured cash markets. But strong export demand could help stabilize pork prices and the cash market.
Cotton futures are trading slightly lower this morning as traders gear up for the USDA reports due out Wednesday morning. The reports are not expected to offer any supportive news for cotton. At 6:35 am CT, December cotton was 17 points lower.