Corn futures are called 2 to 3 cents higher. Overnight trade at 6:30 am CT overnight trade was 2 1/2 to 2 3/4 cents higher. The market continues to trend higher and expectations that USDA will lower their yield estimate on November 9 will be supportive. Several private estimates have been released this week and they estimate a smaller crop and tight ending stocks of corn. Further weakness in the dollar and strength in crude oil overnight will also help support futures trade.
Soybean futures are called 3 to 4 cents higher. Overnight trade at 6:30 am CT was 3 to 4 1/4 cents higher. The market was choppy on Tuesday, but is expected to open slightly higher this morning. Export demand remains strong and weakness in the dollar overnight will be supportive. But gains will be limited by private firms estimating a slightly large soybean crop ahead of USDA’s Crop Production report on November 9.
Wheat futures are called 3 to 4 cents higher. Overnight trade at 6:30 am CT was 3 to 3 1/2 cents higher at the CBOT, 3 3/4 to 4 cents higher at the KCBT and 3 1/4 to 4 1/2 cents higher at the MGE. Poor crop condition ratings and continued dry weather in parts of the HRW and SRW wheat belts are supportive factors. Export demand remains disappointing, but weakness in the dollar is a supportive factor. Traders were disappointed that Egypt bypassed U.S. wheat supplies in a recent export tender.
Cattle futures are called steady to mixed. Cash trade is expected to be steady to lower this week. Light trade developed in Kansas at $98, down $2 from last week. However, most feedlots have been holding out for higher prices. Deferred contracts have seen some renewed buying interest recently and are pushing towards contract highs.
Lean hog futures are called steady to mixed. The cash market remains steady to lower as market ready hog supplies remain abundant and packers can keep slaughter schedules despite lower bids. Losses will be limited and some contract could be supported the recent rebound in pork prices. After the $2.35 rally on Monday, pork prices were up another 90 cents on Tuesday.
Cotton futures are trading sharply higher again this morning. Strength in China’s cotton prices continues to lead U.S. prices higher. Strong demand from China and tight cotton stock projections are driving speculative buying in cotton, with futures hitting new modern day highs. At 6:30 am CT, December cotton is 405 points higher at 138.31 cents and March is 493 points higher at 134.38 cents.