Corn futures are called 1 to 2 cents lower. Overnight trade at 6:45 am CT was 1 1/4 to 1 1/2 cents lower. Growing concern about European debt has led to a rally in the dollar, which is bearish for commodity markets. Weekly export shipments reported on Monday were below the pace needed to reach USDA’s export forecast. Losses will be limited by some ideas that strong global demand will tighten U.S. ending corn stocks to a 15-year low.


 


Soybean futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 3/4 to 2 cents higher. Strength in the dollar and more talk about China trying to control inflation are bearish factors. However, losses will be limited by strong export demand. Concern about dry conditions in Argentina and southern Brazil will be fundamentally supportive.


 


Wheat futures are called 1 to 3 cents higher. Overnight trade at 6:45 am CT was 1/2 of a cent higher at the CBOT, 2 3/4 cents higher at the KCBT and 3 cents higher at the MGE. Continued dry weather in the western Plains and low winter wheat crop condition ratings will be supportive. National average crop ratings stand at only 47% good to excellent and in Kansas the crop is only 37% good to excellent. However, strength in the dollar will limit gains and could push prices lower.


 


Cattle futures are called steady to mixed. Choppy trade is expected until the cash market can develop. Boxed beef prices were mixed on Monday while showlists are slightly larger in the North and smaller in the southern Plains. After the rally to two-year highs last week futures failed to push above resistance yesterday, which could trigger some long liquidation.


 


Lean hog futures are called steady to higher. The market is expected to find support from the firm cash market on Monday and ideas of steady to higher bids again today. Packers appear to be short-bought and in need of supplies. But gains will be limited by strength in the dollar, which could slow exports and the 33 cents drop in pork cutout values.


 


Cotton futures are strongly higher again this morning. The market is moving higher again today after limit gains on Monday. The market remains very volatile and bullish supply/demand fundamentals are supporting trade despite strength in the dollar overnight. At 6:30 am CT, March cotton is 221 points higher at 117.97 cents and May is 215 points higher at 112.99 cents.