Corn futures are called steady to 1 cent higher. Overnight trade at 6:30 am CDT was 1/4 to 1/2 of a cent higher. Light support is expected to come from concern about spring fieldwork delays. Heavy rains in parts of the Midwest will slow progress and forecasts call for above normal precipitation in the western Corn Belt over the next 6-10 days. Gains in futures will be limited by strength in the dollar and weakness in crude oil overnight.
Soybean futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 1/4 to 1/2 of a cent lower. The more favorable weather in South America for harvest of the record crop there is expected to slow shipments of U.S. soybeans. Weekly export inspections last week were the lowest in six months. Strength in the dollar and weakness in crude oil overnight will also weigh on futures.
Wheat futures are called steady to mixed. Overnight trade at 6:30 am CDT was mostly unchanged. Strength in the dollar overnight and improved winter wheat crop condition ratings will be bearish for the wheat market. Winter wheat was rated 65% good to excellent, up from 43% at this time last year. Short-covering from technically oversold levels could help limit losses or push prices higher. Export inspections were improved last week and came in above the pace needed to reach USDA’s export forecast.
Cattle futures are called steady to higher. Strength in beef prices and ideas of steady to firm cash trade this week will be supportive. Choice cutouts were up $1.22 on Monday. Showlists are generally tighter this week and packers may be forced to raise bids for cattle this week. However, futures remain vulnerable to profit-taking with futures near contract higher and near technically overbought levels.
Lean hog futures are called steady to higher. The firm tone in the cash market and the 53 cent jump in pork cutout values on Monday are expected to help support futures. The market has pushed to new contract highs. While fundamental news remains supportive, futures are technically overbought and the market is vulnerable to profit-taking weakness.