Corn futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/4 to 1 3/4 of a cent higher. The market has rallied strongly off of recent lows and looks to build on that momentum this morning. However, gains overnight were trimmed by the rally in the dollar index. Underlying support will come from last week’s estimate by the International Grains council that global corn stocks would fall 20% in the 2010/11 crop year.

Soybean futures are called 1 to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/4 to 2 of a cent higher. The market rallied overnight amid strong export demand and ideas that the weekly export inspections report this morning will be bullish. But gains were trimmed overnight on strength in the dollar and continued concern about the North Korean and South Korean conflict. Weakness in China’s soybean futures are a bearish factor for U.S. soybeans.

Wheat futures are called 4 to 6 cents higher. Overnight trade at 6:45 am CT was 3 3/4 to 4 1/4 cents higher at the CBOT, 6 1/4 to 6 1/2 cents higher at the KCBT and 6 1/4 cents higher at the MGE. Continued concern about dry weather in the western Plains and temperature swings that will further stress the HRW crop will be supportive. Rain in eastern Australia will delay wheat harvest and could damage crop quality. But gains will be limited by the rally in the dollar index.

Cattle futures are called higher on the open. Bullish momentum and ideas of firm cash trade this week are expected to support futures trade. Beef prices were firm on Friday, which choice cutouts up 75 cents. However, gains in futures could be limited by technical overbought conditions and some end-of-month profit-taking by the funds.

Lean hog futures are called are called steady to mixed. Cash trade is expected to be steady to slightly higher as packers work to fill full slaughter schedules again after the Thanksgiving week. Market ready hog numbers are expected to begin tightening soon. However, gains will be limited and futures could trade lower on long liquidation and strength in the dollar.

Cotton futures are up strongly this morning. The futures market remains very volatile. Gains are being attributed to bullish fundamentals. Export demand continues to be strong and stocks are projected to be very tight. Unseasonable rainfall in India has hurt cotton arrivals in India. At 6:30 am CT December cotton was 694 points higher at 123.00 cents and March was 124 points higher at 113.00 cents.