Corn futures are called 8 to 9 cents higher. Overnight trade at 6:45 am CT was 8 to 8 1/2 cents higher. The market has turned higher amid the continued dry conditions in South America over the weekend. The corn crop is being stressed in parts of Brazil and Argentina. Weakness in the dollar index overnight is also providing support. Trade could turn choppy this week ahead of the USDA reports due out on Thursday morning.
Soybean futures are called 10 cents higher. Overnight trade at 6:45 am CT was 10 cents higher. Hot and dry weather in South America over the weekend is supporting the market. Crop stress to the soybean crop is limiting yield potential. Additional support is coming from the weakness in the dollar index. Traders will soon begin gearing up for the USDA reports that will be released on Thursday morning.
Wheat futures are called 8 to 10 cents higher in winter wheat markets. Overnight trade was 10 cents higher at the CBOT and 7 3/4 cents higher at the KCBT. However, the MGE is 6 cents lower. Winter wheat futures are trading higher on spillover selling from corn and on weakness in the dollar index. However, spring wheat is lower on follow-through bearish momentum. Gains in winter wheat will be limited by sluggish export demand. Traders will also be gearing up for the USDA reports that will be released on Thursday morning.
Cattle futures are called steady to lower. Cash trade developed last week at steady to $1 lower on a live basis and $2 to $4 lower on a dressed basis in the North. Packer margins remain poor and boxed beef prices were lower again on Friday. Showlists are expected to be larger and weather remains favorable for feedlot performance. But losses could be limited by short-coving and ideas that short-bought packers will not be able to lower bids this week.
Lean hog futures are called steady to higher. The cash market has been firm recently and steady to higher bids are expected this morning. Market ready hog numbers are beginning to tighten and packers have needed to raise bids to fill slaughter schedules. However, pork prices have been moving lower, which could limit gains in the cash market and futures trade.
Cotton futures are trading mixed this morning. Choppy trade is expected this week as traders gear up for the USDA reports due out on Thursday morning. At 6:35 am CT March cotton was 21 points higher while July was 14 points lower.