Corn futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/2 to 2 cents higher. The market is trading higher overnight on support from bullish momentum. Crop production estimates in Argentina continue to decline from early season ideas, which will push additional export demand to the U.S. Gains are being limited by strength in the dollar index and weakness in Dow Jones futures and crude oil prices overnight.
Soybean futures are called 5 to 6 cents higher. Overnight trade at 6:45 am CT was 5 1/2 to 5 3/4 cents higher. Recent support is being generated by ideas of increased demand from China as South American soybean crop prospects have declined from earlier in the growing season. Recent rainfall has helped ease crop stress, but hot and dry weather earlier in the growing season in Argentina and parts of Brazil has reduced yield potential. Further gains are expected to be limited by outside markets as the dollar index is higher while Dow Jones futures were lower overnight.
Wheat futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 3/4 to 1 1/2 cents higher at the CBOT, 2 1/4 cents higher at the KCBT and 1 3/4 to 2 cents higher at the MGE. Spillover support from corn and soybeans are supporting wheat futures slightly. There is concern about winterkill to the winter wheat crop in the Black Sea region. Temperatures have moderated this weekend, but more cold temperatures are expected later this week. However, gains are being limited by strength in the dollar index and bearish global supply and demand fundamentals as world wheat supplies remain abundant.
Cattle futures are called steady to lower. Cash trade slipped last week to mostly $123, down $1 from the previous week. Packers slowed chain speeds due to poor processing margins. Ideas that feedlots are becoming less current could give packers more bargaining power to push cash prices lower in an effort to improve margins.
Lean hog futures are called steady to lower. Estimated packer margins are in the red and cash trade is expected to be steady to lower today. Futures have been supported recently by ideas of improved seasonal demand. While demand for hams for Easter could provide support over the next few weeks, it will take some improvement just to pull packer margins up from negative levels.
Cotton futures are trading higher this morning. Fears about flooding in Australia and the better-than-expected jobs report in the U.S. last week will be supportive. However, gains are being limited by strength in the dollar index and weakness in Dow Jones futures overnight. At 6:40 am CT, March was 52 points higher and July was 40 points higher.