Corn futures are called 1 to 2 cents higher. Overnight trade at 6:50 am CDT was 3/4 to 1 cent higher. The strong rally in the stock market will likely keep a positive undertone for corn futures. However expectations for an increase in acreage and good crop condition reports so far are indicating this year’s crop could be large. The crop rating is above the ten-year average of 67% and is the highest good to excellent rating since at least 1994.
Soybean futures are called 3 to 5 cents higher. Overnight trade at 6:50 am CDT was 3 to 4 1/2 cents higher. Spillover support from the rally in the stock market should lend support to soybean futures. Adding to gains are ideas that acreage could be down from the March estimate. However, the crop could still be large as condition ratings are well above the ten-year average of 64% and the highest rating since at least 1994.
Wheat futures are called 2 to 4 cents higher. Overnight trade at 6:50 am CDT was 3 to 3 1/2 cents higher at the CBOT, 2 3/4 to 3 cents higher at the KCBT and 3 1/4 to 3 3/4 cents higher at the MGE. The strong SRW basis is boosting prices amid talk that Canada’s wet weather could reduce supply. Also a concern is low protein issues in the Southern Plains HRW wheat. Strong crop condition ratings and large global supplies of wheat will keep a lid on gains.
Cattle are called higher. Boxed beef prices turned positive Tuesday after losing ground for weeks. Choice was up $1.08 to $154.21 and select was $1.20 higher at $146.71. However, futures will be weighed down by expectations for lower cash trade this week, which will not likely develop until Thursday or Friday.
Lean hog futures are called mixed on the open. Packers buying has slowed down for this week, and the Saturday kill is expected to be fairly small. Steady to higher cash hog prices and expectations for tightening of the market hog supply should be favorable for futures. Pork cutouts were 3 cents higher Tuesday at $82.76.
Cotton futures are trading higher this morning. The rally in the stock market is boosting cotton futures as fears over the European debt crisis subside. Favorable crop conditions so far indicate production could be higher than current estimates, which will limit upside price potential.