Corn futures are called steady to 1 cent higher. Overnight trade at 6:30 am CT was 1/4 to 1/2 of a cent higher. Overbought conditions, strength in the dollar and weakness in crude oil will limit buying interest. Non-commercial fund positions are holding a near record net long position. But strength in wheat and soybeans along with the news last week that the EPA will allow E-15 gasoline in cars back to 2001 will be supportive factors.
Soybean futures are called 6 to 7 cents higher in old-crop. Overnight trade was 6 1/2 to 6 3/4 cents higher in old-crop months with new-crop November up 9 1/2. Strong export demand is expected to support the market. China announced the purchase of 8.45 million tonnes of U.S. soybeans after the close on Friday and combined with announcements earlier in the week, 11.5 million tonnes were bought for the 2010/11 and 2011/12 marketing year. However, gains are likely to be limited by strength in the dollar overnight and some improved weather conditions in Argentina.
Wheat futures are called 8 to 11 cent higher. Overnight trade at 6:30 am
CT was 9 to 11 cents higher at the CBOT, 7 3/4 cents higher at the KCBT and 5 1/4 cents higher at the MGE. Follow-through buying from the rally last week is supporting trade overnight. Improving export demand and global wheat production concerns are bullish factors. The flooding in Australia and dry conditions in the U.S. western Plains have been in the market for some time, but know drought in wheat growing regions of China have been brought to attention this morning. Strength in the dollar will help limit gains.
Cattle futures are called steady to lower. Uncertainty about the cash market this week and the larger than expected December placements number reported by USDA on Friday afternoon will are expected to weigh on the market. Cash trade fell $1-$2 last week. However, improved packer margins and more strength in choice beef prices on Friday will limit front end losses. In the Cattle on Feed report, placements last month were estimated to be up 16% from last year, slightly more than expected.
Lean hog futures are called steady to mixed. Pork cutouts have held up well despite increased pork production compared to year-ago. Cash trade is expected to be near steady as market ready hog supplies and packer demand appear to be fairly well balanced. Weakness in futures is expected to be limited by tightening hog supplies and strong demand for pork.
Cotton futures are trading sharply higher this morning. Follow-through strength and speculative buying are pushing cotton prices higher again this morning amid bullish supply/demand fundamentals. At 6:30 am CT, March cotton was up the 500 point limit at 161.94 cents and May was 457 points higher at 155.84 cents.