Corn futures are called 7 to 8 cents higher. Overnight trade at 6:45 am CT was 7 1/2 cents higher. Outside market support and reports that rainfall in South America were less than expected over the extended three-day holiday weekend are supporting futures. The dollar is being pressured and stock market looks to open higher on reports of better-than-expected fourth quarter economic numbers from China.
Soybean futures are called 17 to 20 cents higher. Overnight trade at 6:45 am CT was 17 1/4 to 19 1/4 cents higher. The rally overnight has been driven by reports of lighter-than-expected rainfall in South America over the three-day holiday weekend. Strong fourth quarter economic news from China was encouraging for bulls on ideas of strong demand for soybeans. The dollar index is down strongly while the stock market is expected to open higher.
Wheat futures are called 5 to 7 cents higher. Overnight trade at 6:45 am CT was 6 3/4 to 7 1/2 cents higher at the CBOT, 6 cents higher at the KCBT and 5 1/2 cents higher at the MGE. Weakness in the dollar index overnight and spillover support from corn and soybeans are supporting wheat futures overnight. However, gains are expected to be limited by bearish fundamentals. Export demand remains sluggish. USDA will release weekly export inspections this morning. Shipments need to be above 16 million bushels to stay on USDA’s export pace. inspections were reported last week at only 10.8 million bushels.
Cattle futures are called steady to higher. Strength in the cash market late last week was unexpected, but should give feedlots some resolve for getting steady to higher bids again this week. Live sales at up $2-$3 came after boxed beef prices continue to slide. Gains in futures could be limited by concern that strength in live cattle sales are unsustainable as choice boxed beef prices were down $2.63 last Friday.
Lean hog futures are called steady to mixed. Pork cutouts were able to rally 60 cents on Monday as some plants were closed for MLK Jr. Day. Outside markets will also be supportive as the dollar index is strongly lower overnight while the stock market is expected to open higher. Gains could be limited by large hog weights that will help keep pork supplies large despite an expected seasonal decline in hog numbers.
Cotton futures are trading higher this morning. Outside markets are supporting futures. The dollar index is strongly lower while stock markets are expected to be higher following encouraging fourth quarter economic news from China. March cotton is 89 points higher at 6:35 am CT.