Corn futures are called steady to 1 cent higher. Overnight trade at 6:45 am CT was steady to 3/4 of a cent higher. The market is finding light support from commercial buying and the dollar index giving back a little of its gains yesterday in quiet trade. Trade is expected to slow ahead of the USDA Supply/Demand report due out on Friday morning.
Soybean futures are called steady to 1 cent higher. Overnight trade at 6:45 am CT was 1/4 to 3/4 of a cent higher. Futures were able to turn higher on Tuesday despite outside markets pressuring most commodities. Light buying interest was seen again overnight as the dollar index gave back a small portion of the gains posted yesterday. Strong export demand and the smaller South American crop remain bullish fundamentals. Trade could slow today and tomorrow on position evening ahead of USDA’s Supply/Demand report due out Friday morning.
Wheat futures are called steady to mixed on the open. Overnight trade at 6:45 am CT was 1 3/4 cents lower at the CBOT, 1/2 of a cent lower at the KCBT and 1/4 of a cent higher at the MGE. The market is in consolidation mode after the losses posted on Tuesday. Strength in the dollar index was bearish yesterday, but in overnight trade the dollar gave back a small portion of the gains posted yesterday. Global supply/demand fundamentals remain bearish. Trade could slow and be choppy ahead of the USDA Supply/Demand report due out on Friday morning.
Cattle futures are called steady to higher. Light short-covering is expected to support the market following the strong losses on Tuesday. Expectations for seasonal improvement in demand should also provide some light buying interest on the recent break. However, cash trade has turned lower this week. Reported trade so far this week is $126 to $127, which is $2-$3 lower than last week.
Lean hog futures are called steady to higher. Light support is expected to come from short-covering from the sharp losses on Tuesday and on ideas that the cash market will stabilize. Packers are expected to have to increase bids if they are to hold slaughter schedules into next week. However, packer margins remain poor and pork cutouts values were down 11 cents yesterday.
Cotton futures are trading lower this morning. Confusion over the export ban by India is causing some profit-taking from the gains on Monday. India’s Farm Minister said he would challenge the export ban announced by another government agency. At 6:45 am CT May cotton was 99 points lower and December was 93 points lower.