Corn futures are called 5 to 6 cents higher. Overnight trade at 6:30 am CDT was 5 1/4 to 5 1/2 cents higher. Stabilized outside markets and renewed talk of export sales to China are expected to supportive futures. Dow Jones futures and crude oil were trading higher overnight while the dollar was slightly lower. Gains are likely to be limited by generally favorable conditions for the crop. Crop potential is large with the above average condition ratings and ideas of increased acreage from planting intentions.
Soybean futures are called 7 to 8 cents higher. Overnight trade at 6:30 am CDT was 6 3/4 to 7 3/4 cents higher. Short-covering from recent losses and the rebound in outside markets will provide support. Crude oil and Dow Jones futures were higher overnight while the dollar was slightly lower. Strong cash markets and commercial buying are supportive factors for old-crop. But new-crop gains could be limited by improved planting conditions in the Midwest this week.
Wheat futures are called 3 to 4 cents higher. Overnight trade at 6:30 am CDT was 3 3/4 to 4 1/4 cents higher at the CBOT, 2 3/4 to 4 1/2 cents higher at the KCBT and 4 to 4 1/4 cents higher at the MGE. After slipping to new lows on Tuesday, short-covering is expected to support prices this morning. The recent rally in the dollar has been bearish, but it was slightly lower overnight. Bearish fundamentals will limit gains as export demand is sluggish and world wheat stocks are large. Winter and spring wheat condition ratings are well above normal.
Cattle futures are called steady to mixed. After the sharp losses on Tuesday, some short-covering is likely with futures at technically oversold levels. But with cash prices starting the week lower and the lower trend in boxed beef prices will limit gains. Cash trade developed in Kansas yesterday at mostly $93, down $3-$4 on a live basis from last week.
Lean hog futures are called steady to mixed. Light short-covering could provide some light support this morning. However, the weak tone in the cash market will limit any gains. However, some support is expected to come from pork in storage down sharply from last year and at six-year lows. Stabilized outside markets in overnight trade could contribute to a small short-covering rally.