Corn futures are called 9 to 10 cents higher. Overnight trade at 6:45 am CT was 9 to 9 3/4 cents higher. The market rebounded overnight following the losses last week. Outside markets are bearish, but corn fundamentals are bullish. USDA’s latest projections call for very tight ending stocks. Gains are being limited by strength in the dollar.
Soybean futures are called 6 to 8 cents higher. Overnight trade at 6:45 am CT was 5 3/4 to 8 1/4 cents higher. Futures are bouncing back some from the 70 cent limit losses on Friday. Export demand remains strong and fundamentals are generally bullish. Weekly export inspections to be reported this morning are expected to be well above the pace needed to reach USDA’s export forecast. Further gains are expected to be limited by overnight strength in the dollar.
Wheat futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/2 to 6 3/4 cents higher at the CBOT, 6 1/4 to 6 1/2 cents higher at the KCBT and 5 3/4 to 6 1/4 cents higher at the MGE. Spillover support from corn and soybeans have helped wheat futures bounce from the losses last week. But gains will be limited by the rally in the dollar index overnight and generally sluggish export demand. Weekly export inspections are expected to come in below the pace needed to reach USDA’s export forecast.
Cattle futures are called steady to mixed. Cash trade was generally steady last week and choppy futures trade could develop early in the week. Packer margins have tightened, but profits for feedlots have also diminished. Boxed beef prices will be watched for direction and on Friday choice and select cuts were narrowly mixed. Beef demand remains sluggish although beef exports have been strong. In September, beef exports were up 14% from 2009.
Lean hog futures are called steady to higher. Strength in the cash market last week and ideas of steady to firm bids this morning will be supportive. Pork cutouts were up 61 cents on Friday. Packers are believed to be short-bought while slaughter schedules have been rising. Ideas that slaughter weights have peaked seasonally along with market ready hog supplies will help support the futures market.
Cotton futures are trading lower again this morning. Profit-taking has developed to push cotton futures lower after the rise to record highs. Losses in China’s cotton prices of more than 7% are spilling over into the U.S. cotton market. At 6:30 am CT, December cotton was 111 lower at 139.07 cents and March was 251 points lower at 131.67 cents.