Corn futures are called steady to mixed. Overnight trade at 6:45 am CT was 1/4 of a cent higher to 1/2 of a cent lower. The corn market continues to trend higher after rallying to new highs last week. However, some choppy trade is expected today on positioning ahead of the USDA reports due out on Tuesday morning. The trade is looking for lower production and ending stocks estimates. Strength in the dollar overnight will limit buying interest.


 


Soybean futures are called 3 to 4 cents lower. Overnight trade at 6:45 am CT was 2 3/4 to 3 3/4 cents lower. Outside market weighed on overnight trade. The dollar index is trading solidly higher while crude oil and gold are lower. Traders are positioning ahead of the USDA reports out tomorrow morning. The market is anticipating a slightly larger crop, but a decline in ending stocks due to strong export demand.


 


Wheat futures are called 3 to 4 cents lower. Overnight trade at 6:45 CT was 2 3/4 to 3 cents lower at the CBOT, 3 1/4 cents lower at the KCBT and 3 1/4 to 6 cents lower at the MGE. Strength in the dollar and ideas that the weekly export inspections report will be below the pace needed to reach USDA’s export forecast will weigh on futures. USDA will release a new Supply/Demand report on Tuesday morning. Losses should be limited by ideas that USDA will leave winter wheat crop condition ratings very lower in the Crop Progress report due out Monday afternoon.


 


Cattle futures are called steady to lower. Cash trade declined last week and are expected to be lower again this week. Boxed beef prices were down again on Friday. Packer margins have improved slightly, so if boxed beef prices can stabilize this week, cash trade could as well. Last week the bulk of trade was at $98.


 


Lean hog futures are called steady to higher. The cash market turned higher last week and is expected to be firm today. Pork cutouts are believed to have bottomed and were up 26 cents on Friday. Cash trade was up on average up over a $1 on Friday as well. Packer margins are favorable and it appears that the number of market hogs has peaked.


 

Cotton futures are sharply higher again overnight. The rally in China’s cotton futures to new highs again overnight is supporting U.S. prices. Cotton futures have rallied to a new record high overnight after posting new highs for the previous four consecutive trading sessions. At 6:30 am CT, December futures were 385 points higher at 146.08 and March was 382 points higher at 141.93.