Corn futures are called steady to 1 cent higher. Overnight trade at 6:30 am CST was steady to 3/4 of a cent higher. The market is expected to be firm on light follow-through buying from yesterday’s rally. Outside markets were supportive yesterday, but there was little change overnight. Fundamentals could limit gains as export demand remains sluggish. Although it was a holiday week, export inspections reported on Monday were less than half the pace needed to reach USDA’s export forecast.
Soybean futures are called 4 to 5 cents higher. Overnight trade at 6:30 am CST was 4 1/4 to 4 3/4 cents higher. Bullish chart technicals, recent weakness in the dollar and strong export demand are supportive factors. However, gains could be limited by futures slipping from the highs for the day on Monday. Also, weekly export inspections reported yesterday were strong, although shipments were below expectations. Generally favorable growing conditions in South America point to a large soybean crop there, which will likely curb export demand sharply this spring.
Wheat futures are called steady to mixed. Overnight trade at 6:30 am CST was 1/4 cent higher to 1/2 lower at the CBOT, steady to 3/4 of a cent lower at the KCBT and 1/2 cent lower at the MGE. Consolidation trade is expected following the strong gains on Monday. Weakness in the dollar was supportive yesterday, but the dollar index was only slightly lower overnight. Sluggish export demand remains a limiting factor for futures trade. Export shipments remain well below the pace needed to reach USDA’s export forecast.
Cattle futures are called steady to mixed. Boxed beef prices were higher on Monday, with choice cutouts up 72 cents and select up $1.52. The cash market is currently expected to be steady to firm this week, but larger showlists will limit gains. We look for choppy futures trade until cash market prospects become clearer later in the week.
Lean hog futures are called steady to higher. Cash markets were firm on Monday as packers raised bids to bring hogs to market for the first full slaughter week following recent holiday closures. The cold weather has limited marketings and producers appear to be fairly current. Pork cutouts were up 56 cents on Monday, which will help packer margins from tightening further.