Corn futures are called 4 to 5 cents higher. Overnight trade at 6:45 am CT was 4 1/2 to 4 3/4 cents higher. Bullish momentum helped carry corn futures higher again overnight. The weakening dollar, smaller production estimates for the crop in Argentina and strong demand. Corn used for ethanol remains high and cold and wintery weather in the Plains and Midwest will increase feed needs. However, the market is vulnerable to profit-taking weakness after the recent push to new highs.
Soybean futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/4 to 7 1/4 cents higher. The rally in soybeans was continued overnight after the spot month hit the highest level in 28 months on Tuesday. Bullish factors include the continued port strike in Argentina, further weakness in the dollar overnight and wintery weather in the Plains and Midwest that will increase soybean meal needs for feed.
Wheat futures are called 13 to 15 cents higher. Overnight trade at 6:45 am CT was 13 1/4 cents higher at the CBOT, 13 1/4 to 14 1/4 cents higher at the KCBT and 16 3/4 cents higher at the MGE. The strong losses in the dollar index and concern about the winter wheat crop in the western Plains helped support futures overnight. Some snow hit the western Plains, but it was not as much as expected and heavy winds have left fields exposed to potential winterkill. Kansas wheat conditions were recently pegged at 37% poor to very poor.
Cattle futures are called steady to mixed this morning. Cash trade has not yet developed and futures traders may take a wait and see attitude until cash market bids are established. Wintery weather in the Plains is supportive for front end contracts as feedlot performance will be hurt and marketings will be disrupted. However, futures are already at a sizable premium to last week’s cash trade.
Lean hog futures are called steady to mixed. The market has been volatile the past couple of days. After the rally to new record highs on Monday, futures setback on Tuesday. Look for some consolidation type trade this morning. Cold and wintery weather in the Midwest could be supportive for the front end as hog marketings will be disrupted. Pork cutouts were up 34 cents on Tuesday and national average cash prices were up $1.60.
Cotton futures are strongly higher overnight. Speculative buying has pushed the market to new record highs again. Fundamentals remain bullish, although demand from China is expected to be limited during the Lunar New Year holiday. At 6:45 am CT, March cotton is 229 points higher at 174.51 cents and December is 97 points higher at 117.20 cents.