Corn futures are called 3 to 4 cents higher. Overnight trade at 6:45 am CT was 2 3/4 to 3 3/4 cents higher. Follow-through buying and talk of export demand from China are supporting the market. Tight old-crop corn supplies and the talk that Chinese feed mills have bought or are looking to buy U.S. corn are supporting the market. However, new-crop gains are being limited by ideas of increased acreage this spring and record crop production potential.
Soybean futures are called 11 to 12 cents higher (old-crop). Overnight trade at 6:45 am CT was 11 1/2 to 11 3/4 cents higher. The market is being supported by spillover strength in corn and continues strong export demand. Tight old-crop supplies and strong export demand has helped prices to hold near 5 1/2 month highs. The smaller soybean crop projections in South America have helped keep demand for U.S. soybeans stronger than had been expected. New-crop is being pulled higher as well, but gains are being limited by increased acreage ideas for this spring.
Wheat futures are called 3 to 5 cents higher. Overnight trade at 6:45 am CT was 4 3/4 to 5 cents higher at the CBOT, 2 3/4 to 3 cents higher at the KCBT and 3/4 of a cent higher at the MGE. Spillover support from corn and soybeans and commercial buying are helping push wheat futures higher. Export demand remains solid despite the large global supply of wheat. Gains in the futures market are expected to be limited by the bearish global supply/demand outlook and on recent rainfall in the Plains that will benefit the HRW wheat crop.
Cattle futures are called steady to higher. Futures turned higher on Monday on ideas that cash trade would be steady to firm this week. Packers are short-bought and showlists are generally smaller this week. However, gains in the cash market and in futures are likely to be limited by weakness in boxed beef prices again on Monday. Demand remain sluggish for now, but should improve seasonally this spring.
Lean hog futures are called steady to higher. The market was lower on Monday on concern about sluggish demand. The typical improvement in pork prices this time of year has not happened. However, pork cutouts were up 58 cents on Monday. Cash markets should be steady to firm with the pork cutout gain and as market ready hog supplies are expected to tighten over the next several weeks.
Cotton futures are trading higher this morning. The cotton market was pressured on Monday on the markets confusion over India’s on-again, off-again export ban on cotton. Some expected strength in the stock market and short-covering is supporting cotton prices. At 6:30 am CT May cotton was 67 points higher and December was 59 points higher.