Corn futures are trading 6 to 9 cents higher early morning. The market was able to post gains during the overnight session as the dollar index declined and outside market pressure subsided. Market prices should strengthen as commercial/non-commercial buying picks up. Hot, dry weather forecasts continue to support the market.
Soybean futures are trading 9 to 15 cents higher early morning. Soybean prices rebounded overnight after posting substantial losses on yesterday. Prices are supported as non-commercial long liquidation eases and the dollar index declines. Firm supply/demand fundamentals are also underpinning the market this morning. However, market prices may be pressured by forecasts for light rain across the northern Midwest.
Wheat futures are trading 10 to 11 cents higher early morning. Wheat futures also rallied during the overnight session as the dollar index declined and on spillover buying in the corn and soy markets. The dynamics of the market are becoming more and more bullish as traders fear global wheat stocks to fall significantly short of global expectations due to adverse weather in key production regions.
Cattle futures are called to open mixed this morning. Cattle futures are expected to open uneven on waning beef demand and cash discounts to futures. Boxed beef prices are showing signs of improvement, closing Tuesday with mixed prices. Cash trade is currently undeveloped and anticipated to pick up today, but it would not be unusual for significant movement to start as late as Friday.
Lean hog futures are called to open higher this morning. Hog futures are anticipated to open higher on Tuesday’s surge in the pork carcass value and easing outside market pressures. Prices should see additional support if the dollar index continues to trade lower today.
Cotton futures are trading higher early morning. Cotton futures are trading higher on spillover buying in the grain complex and the lower dollar index. News that Chinese cotton production is expected to fall 9.1% to 6.86 MMT due to a reduction in planted acres is also supported prices this morning.