Corn futures are called 5 to 6 cents higher. Overnight trade at 6:30 am CDT was 5 3/4 to 6 cents higher. Outside market strength will be supportive. News that China will allow its currency to appreciate against the dollar was supportive for Dow Jones futures and weighed on the dollar overnight. Crude oil and gold were strongly higher as well. Further gains will be limited by rainfall in the Corn Belt and ideas that USDA will show strong condition ratings in the Crop Progress report this afternoon.
Soybean futures are called 10 to 14 cents higher. Overnight trade at 6:30 am CDT was 9 1/2 to 14 cents higher. The rally overnight was driven by news from China that they would allow its currency to appreciate against the dollar. This weighed on the dollar and was supportive for Dow Jones futures. The forecasts for some riding over the Midwest this week will be supportive as temperatures will be warm, but most areas that will be dry have ample soil moisture at this time.
Wheat futures are called 6 to 7 cents higher. Overnight trade at 6:30 am CDT was 6 1/2 to 7 cents higher at the CBOT, 6 to 6 1/4 cents higher at the KCBT and 6 1/4 to 6 3/4 cents higher at the MGE. Weakness in the dollar following the news that China will allow its currency to appreciate against the dollar was supportive overnight. Rain in Kansas over the weekend slowed harvest some more and could cause some quality damage. But gains could be limited by the weak basis with much of the harvest still ahead of us.
Cattle futures are called steady to mixed. The Cattle on Feed report on Friday was neutral for the market as it was near trade expectations. However, it did show May placements up 23% from last year and total cattle on feed up 1%. Cash trade was down $1-$2 last week and is expected to be steady to $1 lower again this week. But choice beef prices were up 47 cents on Friday and there is some optimism that wholesale demand will pick up as retailers restock inventory following Father’s Day weekend.
Lean hog futures are called steady to higher. Cash bids are expected to be steady to firm following the 96 cent jump in pork cutout values on Friday. Packer margins have improved and supplies of market ready hogs remain tight. Outside markets will be supportive as Dow Jones futures were higher overnight while the dollar was lower.