Corn futures are called steady to 1 cent higher. Overnight trade at 6:45 am CT was steady to 1 1/4 cents higher. Choppy trade is expected with little fresh fundamental news. Outside markets remain influential, although corn prices rallied yesterday despite gains in the dollar and weakness in the stock market. The dollar turned a little lower overnight and stocks are expected to open slightly higher. Global economic concerns are expected to limit buying interest, but losses are likely to be limited by firm cash markets and light farmer selling.
Soybean futures are called 9 to 10 cents higher. Overnight trade at 6:45 am CT was 9 1/4 to 9 1/2 cents higher. The market failed to turn higher with corn on Tuesday, but the market was able to rally overnight on bargain hunting and short-covering after hitting three-week lows on Tuesday. After strong gains the past couple of days, the dollar has turned lower overnight. But gains are expected to be limited by renewed concern over Greece’s debt crisis and a slowdown in China’s manufacturing.
Wheat futures are called 1 to 2 cents higher (winter wheat). Overnight trade at 6:45 am CT was 1 cent higher at the CBOT, 1 1/2 cents higher at the KCBT and 12 1/4 cents higher at the MGE. Choppy, light volume trade is expected this morning. Recent strength in the dollar has been bearish, but the dollar has given back some of its recent gains overnight. But buying interest is expected to be limited by bearish world supply/demand fundamentals. U.S. wheat export sales have been sluggish as Black Sea region wheat has been taking U.S. market share. Gains at the MGE are expected due to tight spring wheat supplies.
Cattle futures are called steady to mixed. Futures shot higher yesterday and news of higher cash trade. Reports of cash trade at $124 live and $195 dressed in Nebraska helped push the nearby contract to limit gains. Some follow-through buying this morning could provide support, but choppy trade is expected on profit-taking and concern about poor packer margins. Boxed beef prices were mixed on Tuesday with choice cuts down 56 cents while select cuts were up 83 cents.
Lean hog futures are called steady to mixed. The weak tone in the cash market is expected again today. Pork cutouts were down 63 cents on Tuesday and market ready hog supplies remain ample. However, packer margins remain alright and plans for a big Saturday slaughter could help limit weakness in the cash market.
Cotton futures are trading higher this morning. Short-covering is helping the market rebound following recent losses. Outside markets have been bearish, but were able to stabilize overnight as the dollar was lower and stock market and equities are expected to be a little higher. At 6:30 am CT, December cotton was 68 points higher.