Corn futures are called 2 to 3 cents higher. Overnight trade at 6:45 am CT was 2 1/2 to 3 1/4 cents higher. The sharp sell-off in the dollar index and spillover support from soybeans are providing support for corn futures. However, gains are being limited by ideas that high prices are beginning to limit demand. The smaller corn crop prospects in Argentina due to dry conditions and hot weather is also a bullish factor.
Soybean futures are called 4 to 5 cents higher. Overnight trade at 6:45 am CT was 4 to 5 1/2 cents higher. The market continued higher overnight amid weakness in the dollar index. Strong demand from China and reduced soybean crop prospects in Argentina are bullish factors. There is risk of some profit-taking weakness on recent gains if the dollar were to rally from losses.
Wheat futures are called 5 to 6 cents higher. Overnight trade at 6:45 am CT was 6 1/4 to 6 1/2 cents higher at the CBOT, 5 3/4 to 6 1/4 cents higher at the KCBT and 3 to 3 1/4 cents higher at the MGE. Weakness in the dollar and spillover support from soybeans helped support wheat trade overnight. The market has struggled to keep up with corn and soybeans as global supplies are expected to be larger in 2010/11.
Cattle futures are called steady to mixed as cash trade has not yet developed. Asking prices are higher and feedlots will look at strength in beef prices on Monday to get higher prices. Choice cutouts were up $1.40 yesterday. But light profit-taking from recent gains could limit strength or push some contracts lower.
Lean hog futures are called steady to mixed. USDA released the quarterly Hogs and Pigs report after the market closed on Monday. The report showed the hog inventory as of December 1 at 64.3 million head, down just about 1 percent from a year earlier. The number of breeding hogs and the number of market hogs were both a little smaller than the average of the pre-release survey results. However, with hog supplies holding at high levels and hog weights still well above year ago levels, the market will probably have a very limited impact on prices.
Cotton futures are trading higher this morning as prices rebound from recent profit-taking losses. At 6:45 am CT, March cotton was 206 points higher at 147.82 cents.