Corn futures are called 1 to 3 cents higher on spillover from soybean futures.
- Corn futures ended the overnight session mostly around a penny higher, with much of the support coming on spillover from double-digit gains in nearby soybean futures.
- A weaker tone in the dollar index and strength in crude oil and gold futures is also supportive of general commodity buying this morning.
- Traders also have continued strong demand on their minds, as importers haven't slowed their pace of buys despite recent price improvement.
- Gulf corn basis is 2 cents higher for immediate delivery this morning to stand 78 cents over March futures, but basis is down 3 cents for May delivery.
Soybean futures are called 7 to 15 cents higher, with nearbys leading gains.
- Soybean futures ended the overnight session 6 to 15 cents higher, with the March through August contracts posting double-digit gains on followthrough from last week's gains.
- Tight old-crop supplies and continued buying of old-crop supplies are the fuel behind the sharp price advance from the late January low.
- AgRural has cut its Brazilian soybean forecast by 1.8 MMT to 87 MMT due to late-season drought impacts.
- March soybean futures ended the overnight session above the key $13.50 level, which makes bulls' next major upside objective the September high of $13.77 3/4.
- Gulf soybean basis is steady this morning to signal supplies and demand are in balance.
Wheat futures are called 2 to 4 cents higher on spillover from neighboring pits.
- SRW and HRS futures ended the overnight session mostly 2 to 4 cents higher, with HRW steady to 2 cents higher.
- Futures benefited from spillover from neighboring pits, as well as weakness in the U.S. dollar index.
- Traders are also keeping a close eye on the drought situation in the HRW belt, as there's little in the way of meaningful precip in the near-term forecast and the condition of the crop has declined sharply from last fall.
- Otherwise, there's little fresh news for the market to digest, as no weekend export business was announced.
- Gulf SRW and HRW basis are steady this morning.
Live cattle futures are called higher on strength from the product market.
- Live cattle futures are expected to be higher this morning in reaction to yesterday's sharp gains in the beef market.
- Choice beef values started the week $3.30 higher and Select rose $2.06 on 153 loads changing hands.
- Strength in the beef market, combined with last week's steady to firmer cash cattle trade, raises expectations for higher cash cattle trade this week.
- Feeder futures are expected to be higher this morning based on spillover from live cattle as well as the fact March feeder cattle futures ended last week at $1 discount to the cash index.
Lean hog futures are called steady to firmer on followthrough from Friday's gains.
- Lean hog futures are expected to see followthrough from Friday's gains and strength in the cash market.
- Packers are expected to raise bids this morning after several plants were closed for Presidents Day and are short-bought on supplies.
- Pork cutout values firmed 68 cents yesterday, but only 258.4 loads of product changed hands.
- With packers' profit margins well in the black, there is incentive for them to raise bids today.
- April lean hog futures are now the lead month contract and have the responsibility of following the cash market more closely. This raises the risk of profit-taking in the near-term as the contract holds around an $10 premium to the cash index.