Corn futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 3/4 to 7 1/4 cents higher. Weakness in the dollar, strength in crude oil and Dow Jones futures up strongly overnight will be supportive for corn. Spillover support is also expected from soybeans. Profit-taking at month’s end and long liquidation weighed on prices yesterday, but with the calendar flipped to December funds appear ready to buy again this morning.
Soybean futures are called 15 to 16 cents higher. Overnight trade at 6:45 am CT was 15 1/2 to 16 1/2 cents higher. Outside markets and strong export demand are expected to push soybean futures higher this morning. Overseas stock markets rebounded overnight and the U.S. dollar is lower. Strength in Dow Jones futures, crude oil and gold will be supportive for commodity markets. There is talk circulating that China is in the market for U.S. soybeans. Traders will be looking for confirmations of business.
Wheat futures are called 23 to 27 cents higher. Overnight trade at 6:45 am CT was 23 3/4 to 24 1/4 cents higher at the CBOT, 26 1/2 to 27 cents higher at the KCBT and 26 1/2 to 27 1/2 cents higher the MGE. Weakness in the U.S. dollar and continued dryness in the western Plains are supporting the market. Winter wheat condition ratings remain low in the western Plains and forecasts call for mostly dry weather over the next week or longer there. In eastern Australia, heavy rainfall is disrupting harvest and could cause quality problems.
Cattle futures are called steady to higher. Further strength in the cash market yesterday and the 37 cent jump in choice beef prices are expected to support the futures market. Cash trade in the South was as high as $104. Weakness in the dollar overnight is a supportive factor for beef exports.
Lean hog futures are called steady to mixed. The cash market was higher again on Tuesday, but with pork cutouts down $1.57 yesterday the cash market could soon turn lower. Packers are short-bought and market ready hog numbers are beginning to tighten, but processing margins have narrowed recently. Losses will be limited by weakness in the dollar and strength in Dow Jones futures overnight.
Cotton futures are strongly higher this morning. Bullish fundamentals and outside market support are pushing cotton futures higher. The dollar is lower and Dow Jones futures higher overnight, which are bullish factors for cotton demand. At 6:30 am CT, March is 261 points higher at 119.95 cents and May is 240 points higher at 114.90 cents.