Corn futures are called 2 to 3 cents higher. Overnight trade at 6:30 am CDT was 2 3/4 to 3 1/4 cents higher. The market was higher overnight on ideas of supportive weekly export sales report. Pre-report trade expectations range from 24-35 million bushels. Spillover support also is coming from soybeans. However, gains will likely be limited by strength in the dollar and favorable crop conditions that should help keep crop condition ratings strong.
Soybean futures are called 2 to 3 cents higher. Overnight trade at 6:30 am CDT was 2 1/4 to 2 3/4 cents higher. Talk of more export demand from China for both U.S. and South American soybeans was supportive on Wednesday and should support prices again this morning. There is some growing sentiment that soybean acreage could be smaller-than-expected in the June 30 acreage report. Outside markets could limit gains as the dollar was higher overnight.
Wheat futures are called 2 to 3 cents higher. Overnight trade at 6:30 am CDT was 2 1/4 to 2 1/2 cents higher at the CBOT, 2 to 2 1/4 cents higher at the KCBT and 2 1/2 cents higher at the MGE. Short-covering and spillover support from corn and soybeans are expected to support futures this morning. Wet weather in the Plains has delayed harvest progress, although forecasts call for better conditions next week. Poor Canadian weather is limiting wheat acreage and crop conditions and will be supportive. But gains are likely to be limited by strength in the dollar and concern about seasonal harvest pressure once weather conditions improve.
Cattle futures are called steady to mixed. Futures are expected to be choppy while traders wait for the cash market to develop and on positioning ahead of the Cattle on Feed report due out Friday afternoon. Cash trade is expected to develop at steady to lower trade than last week. The rebound in boxed beef prices recently was supportive, although choice cutouts were down 44 cents on Wednesday.
Lean hog futures are called lower on the open. Cash prices were stronger yesterday, but that could be short-lived as pork cutouts were down $1.42 on Wednesday. Profit-taking from recent gains in futures and ideas of lower cash bids will pressure prices. However, losses will be limited by tight supplies of market ready hogs and declining slaughter weights.