Corn futures are called 2 to 6 cents higher. Overnight trade at 6:45 am CT was 2 to 6 1/4 cents higher. Concern about a shortfall in production and outside markets are supporting futures. Planting delays in the eastern Corn Belt could switch some acreage out of corn and flooding in the south could also trim acreage. Outside markets were supportive overnight with strong gain in gold and crude oil while the dollar index was lower.
Soybean futures are called 5 cents higher. Overnight trade at 6:45 am CT was 5 to 5 1/4 cents higher. The market was able to rally on Tuesday and gains were extended overnight. Although planting delays are not critical to yield potential yet, the slow pace of seeding could limit yield potential. On the other hand, corn planting delays could push some acreage intended for corn to soybeans. But strength in gold and crude oil and weakness in the dollar index will provide some support. Gains will be limited by sluggish export demand as global demand has largely shifted to South American soybeans.
Wheat futures are called 8 to 11 cents higher. Overnight trade at 6:45 am CT was 10 1/4 to 11 1/4 cents higher at the CBOT, 7 3/4 cents higher at the KCBT and 8 to 10 1/4 cents higher at the MGE. Deteriorating winter wheat conditions and the slow pace of spring wheat planting are expected to help the market build on the gains yesterday. There are some concerns about global wheat production with drought a problem in France and Germany. Weakness in the dollar and expected spillover support from corn will also help push wheat prices higher.
Cattle futures are called steady to mixed. Cash trade has not developed yet this week, but traders are expected $1-$2 lower business compared to last week. Losses should be limited by some strength in boxed beef prices. Choice cutouts were up 83 cents on Tuesday. Futures could build on the late recovery rally yesterday that helped limit losses.
Lean hog futures are called steady to mixed. Follow-through buying is expected to be countered by some profit-taking. Cash trade is expected to be mostly steady. Packers have been firm this week as cutouts have shot to record highs and as market ready hog supplies tighten. However, pork prices were down $1.29 yesterday and there is concern that pork prices will continue to slip after wholesalers fill Memorial weekend needs.
Cotton futures are trading higher this morning. Speculative buying is supporting the July contract on talk of a lack of cotton that will be deliverable for the July contract. New-crop is higher as well as production prospects are being hurt by drought in Texas and southern Georgia while flooding is a problem in Mississippi. At 6:30 am CT, July was 256 points higher and December was 123 points higher.