Corn futures are called 4 to 5 cents higher. Overnight trade at 6:45 am CT was 4 3/4 to 5 cents higher. Continued talk of a smaller corn crop in Argentina that would tighten global corn stocks is supporting the market. Rumors that Argentina could ban corn exports to ensure domestic supplies are supportive, although this has so far gone unconfirmed. Firm cash markets and technical strength following four days of gains in the corn pit are also pushing prices higher.
Soybean futures are called steady to mixed. Overnight trade at 6:45 am CT was 1 to 1 1/4 cents lower. Spillover strength from corn and optimism over improved export demand supported futures at times overnight. However, gains were limited and prices are being pressured lightly by ideas that recent rainfall in Argentina will benefit the soybean crop. The market is also lower on strength in the dollar index and weakness in the stock market as Dow Jones futures were trading lower overnight.
Wheat futures are called 3 to 5 cents higher. Overnight trade at 6:45 am CT was 3 to 4 3/4 cents higher at the CBOT, 3 to 3 3/4 cents higher at the KCBT and 4 1/4 to 5 cents higher at the MGE. The market is trading higher on a continued short-covering rally. Spillover support from corn and talk yesterday that Russia could impose export tariffs on wheat are supportive factors. Firm cash markets for the SRW crop are also providing support. But gains will be limited by strength in the dollar that could slow the recent improvement in export demand.
Cattle futures are called mixed on the open as traders wait for the cash market to develop. Boxed beef prices have improved so far this week, but packer processing margins well in the red. With some contracts posting new highs yesterday, futures could be pressured by profit-taking amid technically overbought levels.
Lean hog futures are called steady to mixed. The cash market tone was firm yesterday, but pork cutouts were down 54 cents. Packers appear short-bought and in need of hogs despite unimpressive processing margins. Declining slaughter weights has led to ideas that big slaughters in recent weeks have pulled some hogs forward.
Cotton futures are trading lower this morning. Outside markets are weighing on the market. The dollar index is higher and Dow Jones futures are trading lower. Demand from China is in a lull due to New Years celebrations there. At 6:40 am CT, March cotton was 93 points lower and May was 84 points lower.