Corn futures are called 17 to 18 cents higher (old-crop). Overnight trade at 6:45 am CT was 17 to 17 1/2 cents higher in old-crop months while new-crop December was 6 cents higher. Outside market support and fund buying are expected to support the futures market. Crude oil and Dow Jones futures are strongly higher in overnight trade while the dollar is sharply lower. Old-crop is leading the gains after new-crop has led the gains the past couple of session. New-crop has been supported by planting delay concerns. Forecasts for the Midwest continue to look wet for the next week to ten days.
Soybean futures are called 14 to 16 cents higher. Overnight trade at 6:45 am CT was 14 1/2 to 16 1/2 cents higher. The soybean market is following the rally across the commodity markets as the dollar index is sharply lower while crude oil and Dow Jones futures are strongly higher. Fundamentals remain mixed for soybeans. A large soybean crop in South America and some cancellations from China have slowed export demand. However, ending stocks projections for U.S. soybeans remain tight and there is little cushion for this year’s crop.
Wheat futures are called 16 to 19 cents higher. Overnight trade at 6:45 am CT was 17 to 19 cents higher at the CBOT, 16 1/2 to 17 cents higher at the KCBT and 16 1/2 to 16 3/4 cents higher at the MGE. The market is solidly higher again on outside market support, continued drought in the southern Plains and planting delays in the northern Plains. Weakness in the dollar index overnight could help spur export demand. The CBOT is being supported by spillover support from corn. KCBT futures are finding further support from continued dry conditions and poor HRW conditions ratings. The MGE is higher on flooding and wet conditions in the northern Plains that will continue to slow planting progress.
Cattle futures are called steady to higher. Choice beef prices were up $2.07 on Tuesday, indicating that demand is improving seasonally. Cash trade is expected to be steady with last week following the recent strength in futures. Outside markets are also supportive. Weakness in the dollar index overnight is a bullish factor for exports and the rally in Dow Jones futures is a positive development for domestic demand.
Lean hog futures are called steady to higher. Outside markets are helping to push commodity markets higher. Weakness in the dollar overnight could help spur additional export demand for pork. Pork prices were down slightly on Tuesday, but are still near historically high levels. Cash trade is expected to be steady to firm as packers are reportedly planting a big Saturday slaughter.
Cotton futures are trading solidly higher this morning. Broad-based commodity support is coming from weakness in the dollar overnight and strength in Dow Jones futures. Cotton prices are rebounding some from recent losses. At 6:30 am CT, May cotton was 237 points higher and December was 127 points higher.