Corn futures are called 4 to 5 cents higher. Overnight trade at 6:45 am CT was 4 1/2 to 4 3/4 cents higher. The market is rebounding slightly from the losses posted on Thursday. Concern about corn crop prospects in Argentina has been supportive, although forecasts call for some much needed rainfall next week. Traders will continue to watch forecasts for South American weather and outside markets for direction. USDA will also release a new weekly Export Sales report this morning. Pre-report trade estimates range from 12-24 million bushels.
Soybean futures are called 7 to 8 cents higher. Overnight trade at 6:45 am CT was 7 to 7 1/2 cents higher. Futures were able to bounce off of the losses yesterday on stabilized outside markets and some unfavorable soybean crop conditions in southern Brazil and Argentina. Forecast are calling for some much needed rain next week, but hot and dry conditions have been noted this week. Gains could be limited by the weekly Export Sales report due out this morning. Trade estimates range from 15-22 million bushels.
Wheat futures are called 5 to 7 cents higher. Overnight trade at 6:45 am CT was 5 1/2 to 5 3/4 cents higher at the CBOT and the KCBT was 6 1/4 to 7 1/2 cents higher. The market has turned higher on light short-covering following losses the past two trading sessions as the dollar index has turned slightly lower overnight. A weekly Export Sales report will be released this morning and traders are looking for sales to be in the 11-18 million bushel range.
Cattle futures are called steady to mixed as traders wait for the cash market to develop. Most cash markets have not traded yet this week, although steady bids with last week are expected. Packers are short-bought, but processing margins are poor. Margins will further be hurt by the $2.56 drop in choice cutouts on Thursday.
Lean hog futures are called steady to mixed. The cash market has been firm the recently, but pork prices have been declining. Pork cutouts values were down 38 cents on Thursday. Hog supplies remain ample and slaughter weights have increased, but market ready hog numbers are expected to decline seasonally moving forward. Demand is also expected to improve especially given the relatively high price of beef compared to pork.
Cotton futures are trading slightly higher overnight. Short-covering from the losses on Thursday are supporting the market as outside markets stabilized overnight. At 6:35 am CT March cotton was 32 points higher at 95.06 cents.