CBOT futures are trading about 1-2 pct higher.  Support comes from friendly outside markets including a weaker US dollar and higher energy futures. Corn’s strong bounce off chart support on Friday is also supportive.  Although the spec funds have been reducing their large long positions in corn and soybeans, they are probably seeing how much prices might recover.

  Live Cattle futures are trading higher on follow-through buying from last Friday’s strength. The Cattle on Feed report was in-line with expectations and considered friendly. Cash cattle traded a dollar higher on Friday.

  Lean Hog futures are trading surprisingly higher given the lack of bullish cash markets and futures’ premium to the cash price.

  US equity markets are higher on hopes for moving closer to a fiscal cliff and budget solution.  A positive housing report also lifted the market. 

Corn Dec +13 740; Mar +12 743; Dec +10 619

Bean Jan +14 1398; Mar +17 1385; Nov +16 1279   Meal Dec +1 425; Oct +4 363.5   Oil +104 4809

Wheat Dec +8 846; Jly +8 854    KC +6 882;  MGE +4 914

LC Dec +60 12675; Jun +37 13035

FC Jan +30 14590; Apr +30 15010; Aug +35 15525

LH Dec +130 8162; Apr +75 9200

Milk Dec +24; Jan +16 1872

Oats +11 376

Rice -3 1481

 US$ -.4%

Dow +1.2%

SP +1.5%

NAS +1.6%

Tran +.9%

VIX -3.6% 15.81

WTI +2.4%

Brent +2.2%

Gas +1.8%

NG -.9%

HO +2.8%

Eth +.9%

Gold +1%

Slvr +1.9%

5-yr +.024 0.634% 10yr +.032 1.616% 30yr +.034 2.768%