Corn futures are called 1 to 3 cents higher. Overnight trade at 6:10 am CST was 3 to 4 3/4 cents higher. Follow-through buying after March futures cleared the $6.00 mark has futures hovering a few cents higher. Support stems from concern over tight U.S. supplies, dryness in Argentina and the need for additional corn acres in 2011. Also supportive are the planted acreage estimates for 2011 that are being released. Monday's weekly export inspections were a bit below expectations at 27 million bushels.
Soybean futures are called 2 to 4 cents higher. Overnight trade at 6:10 am CST was 2 3/4 to 3 1/4 cents higher. Prices came under pressure from favorable weekend rains in Argentina. There have been concerns about crop damage in Argentina, which have escalated as temperatures have climbed into the 90s. Weekly export inspections were higher than expected at 44.6 million bushels and the previous week was revised 11 million bushels higher.
Wheat futures are called 1 to 4 cents higher. Overnight trade at 6:10 am CST was 1/2 to 1 1/2 cents higher at the CBOT, 2 3/4 to 5 cents higher at the KCBT and 3/4 to 2 3/4 higher at the MGE. Futures are taking a breather after Monday's gains. Also weighing are forecasts for somewhat more cooperative weather. Western Australia is expected to have several days of dry weather which will facilitate harvest, although this won't last long. There is talk that Australia's wheat losses might have been overstated.
Cattle futures are called mixed. Follow-through buying from Monday will lend support. Light pre-holiday trade activity and profit taking from recent gains could allow prices to slip. Also weighing will be cutouts. Choice beef prices were down sharply on Monday, falling $1.39 to $160.32.
Friday's Cattle on Feed report was neutral to a bit negative for prices on slightly higher than expected placements. Feedlots are current, but light fed cattle sales last week may translate into additional cattle to market in holiday shortened trade this week.
Lean hog futures are called steady to lower. Packers appear to have most of their needs already met and demand is expected to be moderate to light this week due to the holidays, which could pressure cash prices. Supplies are forecast to tighten by early 2011, which will limit losses. Pork cutouts were down 55 cents to $77.92.
Cotton futures are trading solidly higher this morning. Strength in the Chinese market is carrying over into U.S. cotton futures. Concerns about tight supplies in the midst of surging demand is continuing to push futures strongly higher, with the March contract climbing to a new life-of-contract high. At 6:10 am CST, March is 500 points higher at 159.12 and May is also 500 points higher at 147.39 cents.