Corn futures are called 4 cents higher. Overnight trade at 6:45 am CT was 4 to 4 1/4 cents higher. The market is being supported by weakness in the dollar, concern over the corn crop in Argentina and reports of export interest from China. Hot and dry weather in Argentina is expected to stress the corn crop for the second largest corn exporter.
Soybean futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/4 to 1 3/4 cents higher. Commercial buying, weakness in the dollar and concern about the soybean crop in Argentina are supportive factors. Argentina is the third largest soybean producer, but hot and dry weather is threatening crop production prospects. Strong export demand remains a supportive factor as well.
Wheat futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 3 1/4 to 3 1/2 cents lower at the CBOT, 1 3/4 to 2 3/4 cents lower at the KCBT and 3 1/4 cents lower at the MGE. The wheat market failed to follow corn and soybean higher on Tuesday and commercial selling is weighing on futures overnight. There is little fresh news to trade as the dry weather in the southern Plains has hurt condition ratings, but will have little effect on the market during the winter dormancy. Losses will be limited by weakness in the dollar and strength in corn prices.
Cattle futures are called steady to higher. Cash trade is expected to be steady to firm compared to last week. Recent strength in futures should help give the cash market a boost even though boxed beef prices remain choppy. But profit-taking and the premium of futures to the most recent cash trade could limit gains in futures on Wednesday.
Lean hog futures are called steady to mixed. Cash trade was firm on Tuesday as short-bought packers were in need of some hogs. But the 30 cent drop in pork cutouts and concern about seasonally slow wholesale pork demand will limit buying interest. Positioning ahead of the quarterly Hogs and Pigs report due out on Monday, December 27 could limit movement in the futures market.
Cotton futures are trading down the limit. Profit-taking after reaching all-time higher was triggered by losses in China’s cotton market. Overnight trade in cotton was down the 500 points limit with March at 154.12 cents and May at 139.69 cents.