Corn futures are called 5 to 6 cents higher. Overnight trade at 6:45 am CT was 5 3/4 to 6 cents higher. The market rebounded overnight from recent losses with the help of weakness in the dollar and a bounce in crude oil futures. Supportive fundamentals will help the market rebound as well. With little fresh news available, the market could remain choppy.
Soybean futures are called 6 to 7 cents higher. Overnight trade at 6:45 am CT was 6 1/4 to 7 cents higher in old-crop months while new-crop November was 11 3/4 cents higher. Futures are recovering from the strong losses posted yesterday. Tight ending stocks projections remain a fundamentally bullish factor. Outside markets could also give commodities a boost as the dollar is lower while gold and crude oil are higher overnight. Gains are expected to be limited by improved crop weather in Argentina and ideas that Chinese demand will slow during the upcoming Lunar New Year holiday.
Wheat futures are called 7 to 9 cents higher. Overnight trade at 6:45 am CT was 8 1/2 to 9 cents higher at the CBOT, 7 1/4 to 8 cents higher at the KCBT and 6 1/2 to 7 1/2 cents higher at the MGE. The market is expected to be supported by commercial buying, weakness in the dollar and spillover support from corn and soybeans. Continued problems with wheat crop quality in Australia are supportive. Traders are concerned about tight supplies of high quality wheat globally. Dry weather problems in the U.S. Plains will also provide support for the market.
Cattle futures are called steady to higher. Cash trade has developed at $104-$105 this week, down $1-$2 from last week. While the rally in beef prices has stalled, they are holding near steady at near record high levels. The futures market is expected to rebound slightly from recent losses along with other commodities following the losses on Tuesday.
Lean hog futures are called steady to higher. Pork cutouts were up 36 cents on Tuesday and cash markets are called steady to firm. The news that South Korea was lowering tariffs on pork imports was supportive. Weakness in the dollar overnight is a supportive factor for pork cutouts. However, gains will be limited by futures trading near contract highs.
Cotton futures are trading sharply higher this morning. The market is rebounding from the profit-taking losses yesterday. Strength in China’s cotton prices and bullish fundamentals is driving speculative buying. At 6:30 am CT, March cotton was 409 points higher at 165.92 cents and December is 208 points higher at 110.75 cents.