Corn futures are called 5 cents higher. Overnight trade at 6:45 am CT was 5 to 5 1/4 cents higher. Futures finding support from continued concern about South American corn production and outside markets. Despite some recent rainfall and forecasts calling for some rain, corn production potential has been reduced in Argentina and southern Brazil due to hot and dry weather. Further weakness in the dollar index overnight and strength in crude oil futures are expected to help corn futures trade higher this morning.
Soybean futures are called 11 to 12 cents higher. Overnight trade at 6:45 am CT was 11 1/4 to 11 3/4 cents higher. Support is being generated from ideas of reduced soybean production in South America. There has been some rainfall recently and forecasts for rain next week, but hot and dry weather has limited yield potential in southern Brazil and Argentina. Improved economic data in China has led to optimism of strong demand for U.S. soybeans. Weakness in the dollar index and strength in crude oil futures overnight will be supportive.
Wheat futures are called 2 to 5 cents higher. Overnight trade at 6:45 am CT was 3 1/4 to 5 cents higher at the CBOT, 2 1/2 to 4 3/4 cents higher at the KCBT and 1 3/4 cents higher at the MGE. Continued weakness in the dollar index overnight and spillover support from corn are helping wheat futures trade higher. Technically oversold conditions have sparked some short-covering. However, gains are being limited by sluggish export demand as global wheat supplies remain ample.
Cattle futures are called steady to mixed this morning as the market tried to gauge cash trade for the week. Boxed beef prices turned mixed on Wednesday, but recent weakness has put packer margins further in the red. However, tight supplies of market ready cattle could help keep bids steady or even higher again this week.
Lean hog futures are called higher on the open. Pork cutout values were up another 40 cents on Wednesday and there is a firm tone in the cash market. Bullish momentum and ideas that the tighter hog supplies and improving pork prices will support the cash market are expected to push futures higher.
Cotton futures are trading lower this morning. Profit-taking is weighing on futures again this morning after futures hit the highest level in two-months on Tuesday. Consolidation trade is weighing on prices, but further weakness in the dollar index is expected to limit losses. At 6:45 am CT, March futures are trading 53 points lower and July is 58 points lower.