Corn futures are trading 3 to 5 cents higher. Corn futures are supported by strong cash basis and firm demand for U.S. corn. Corn prices are seeing additional support from the wheat market as weather uncertainties continue to drive wheat prices.
Soybean futures are trading 8 to 13 cents higher. Soybean futures recovered after prices plunged on profit taking last week and weakness in the soy complex. Soybeans prices are trading up as the fundamentals of the market remain bullish. Prices are also seeing added support from higher soybean meal and oil prices.
Wheat futures are trading mixed. Wheat futures are trading lower at the CBOT on forecasts for rain in Russia over the next three days. However, weather is still an important factor for wheat prices. Continued dry weather in U.S. Plains and Australia will lend support to prices, limiting losses.
Cattle futures are called to open higher. Last week’s bullish USDA Cattle on Feed Report caused prices to soar. The report was expected to show a 12 percent decline in April placements but instead showed an unexpected decline of 15 percent. Prices are supported by higher beef cutout values and strong demand for beef products. Trade in the cash market is expected to be steady to $2 higher.
Lean hog futures are called to open mixed. Hog futures closed down last week on profit taking and lower than expected cash trade. Spillover support from the cattle market was not enough to lift prices. Pork cutouts are down, however, trade in the cash market is called steady to 50 cents higher this week.
Cotton futures are trading higher this morning. Cotton futures are still seeing support from last week’s price rally. Forecasts of warmer dryer weather in parts of western Texas is lending support to prices as well.