Corn futures are called 2 to 3 cents higher. Overnight trade at 6:45 am CT was 2 to 2 1/2 cents higher. The sharp jump in the stock market yesterday and further weakness in the dollar index overnight will provide some light support. However, gains are expected to be limited. Record corn production in China and limited export demand for U.S. corn will limit gains. USDA’s weekly export sales report this morning is expected to show new commitments only in the 14 million to 18 million bushel range.
Soybean futures are called 7 to 8 cents higher. Overnight trade at 6:45 am CT was 7 1/2 to 8 cents higher. The strength in the stock market on Wednesday and some weakness in the dollar index overnight are supportive factors. The weekly export sales report due out this morning could provide some support. Pre-report trade estimates range from 20 million to 31 million bushels. However, further gains will likely be limited by rising production estimates for the soybean crops in Brazil and Argentina.
Wheat futures are called 4 to 6 cents higher. Overnight trade at 6:45 am CT was 6 cents higher at the CBOT, 4 1/4 cents higher at the KCBT and 5 1/2 cents higher at the MGE. Weakness in the dollar index overnight and light short-covering are supporting the market. However, gains will likely be limited by sluggish export demand and bearish global supply/demand fundamentals. Weekly export sales to be reported this morning are expected to be in the 13 million to 20 million bushel range.
Cattle futures are called steady to lower. Light profit-taking from the gains on Wednesday and declining beef prices are expected to weigh on futures. Poor processing margins are getting worse and will likely push cash market trade lower this week. However, the strong rally in the stock market on Wednesday and uncertainty about the cash market this week should help limit losses.
Lean hog futures are called lower on the open. Packer margins took a hit on Wednesday with cash prices up on average about $2 while pork cutouts were down $2.10. The rally in the stock market on Wednesday and reports of continued strong export demand should help limit losses.