Corn futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/4 to 6 1/2 cents higher. The market is rebounding from the losses on Friday amid the outlook for tight ending stocks and weakness in the dollar overnight. Ethanol production remains large. The semi-annual Cattle Inventory report showe4d cattle numbers down 1% below year-ago, but it was about 300,000 head higher than expectations.


 


Soybean futures are called 9 to 10 cents higher. Overnight trade at 6:45 am CT was 9 1/4 to 9 3/4 cents higher. The market is rebounding with help from weakness in the dollar. There remains uncertainty about the soybean crop in Argentina. Recent rainfall has helped conditions, but production potential has been lowered by dry conditions early in the growing season. Traders are expecting weekly export inspections to be strong this morning, but shipments are likely to slow soon as China celebrates the Lunar New Year holiday.


 


Wheat futures are called 10 to 12 cents higher. Overnight trade at 6:45 am CT was 11 to 11 3/4 cents higher at the CBOT, 10 1/4 to 11 3/4 cents higher at the KCBT and 7 1/4 to 7 3/4 cents higher at the MGE. Spillover support from corn and soybeans and weakness in the dollar are supporting the market. Export demand has improved recently and the global supply of high-quality wheat is projected to be tight. There is concern about the political unrest in Egypt because they are the world’s largest wheat importer. So far in 2010/11, Egypt has purchased 2.76 million tonnes of U.S. wheat.


 


Cattle futures are called steady to mixed. Wintery weather in the Plains is likely to slow rate of gains and disrupt marketings. The Cattle inventory report released on Friday afternoon showed the total U.S. inventory of cattle and calves as of January 1 total 92.582 million head, down 1% from a year ago. However the inventory was about 300,000 head higher than expectations. The higher figure was due in part to an upward revision of 180,000 head to the year ago figure.


 


Lean hog futures are called higher on the open. The cash market shot higher on Friday, gaining over $2.50 on a national average. Tightening supplies of market ready hogs and firm pork cutouts are expected to be supportive for the cash market and futures. However, futures are at risk of some profit-taking.


 


Cotton futures are trading up the 4 cent limit in front end contracts. Speculative buying and bullish fundamentals are supporting futures following the profit-taking losses on Friday. Outside markets seem to have stabilized following the losses on Friday due to the political unrest in Egypt. The March through July contracts are up 400 points this morning.