Grain markets rally In overnight trade

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Corn futures are trading 5 to 6 cents higher. Prices jumped overnight as the dollar weakened against the euro making exports more appealing to buyers. The progress of new crop corn was unchanged as reported by the USDA; however weather forecasts going into the new few weeks for major production regions remain a concern for the market.

Soybean futures are trading 11 to 16 cents higher. Producer protests in Argentina and drought in Brazil pushed soybean prices into double digits overnight. Global supplies are tight as Brazil lowers its soybean crop estimate once more. Prices are supported as news circulates that China is looking to secure soybean needs. Overall, the market is being held up by bullish fundamentals.

Wheat futures are trading 3 to 5 cents higher. Price rallies in the corn and soybean markets pulled wheat futures higher in the overnight session. The declining dollar index is supporting wheat futures also. The fundamentals of the market are bearish as global wheat supplies are anticipated to be plenteous and winter wheat harvest is progressing nicely in the U.S. Plains. Both of the aforementioned factors will limit gains and keep wheat prices in check.

Cattle futures are called to open mixed. Cattle futures are expected to open sideways. Yesterday’s box beef prices will likely weigh on prices. Choice was $1.22 lower while select was down marginally. Trade in the cash market is not expected to pick up until later in the week, but prices are called to steady to higher.

Lean hog futures are called to open lower. Profit taking and traders clearing up long positions in the market is expected to weigh on market prices, resulting in a soft open. However, losses should be limited as supplies are tightening and trade in the cash market is expected to be steady to 50 cents higher.

Cotton futures are trading 80 to 150 points higher. Cotton futures gained momentum overnight as the dollar eased against the euro. News that the EU may provide stimulus packages for failing banks encouraged buying across all commodities groups, with cotton being no exception. However, the overall tone of the market remains bearish.



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