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Overnight highlights. Following are highlights of overnight trade:
Corn: 1 to 2 cents higher. Futures benefited from short-covering overnight, as well as mildly positive outside markets. Futures slide yesterday despite positive news in the form of a stronger-than-expected weekly export inspections tally, as traders are more focused on expectations for a large 2012 crop. With little fresh news this morning, early price gains could be difficult to sustain.
Soybeans: 8 to 10 cents higher. Futures were supported overnight by slight weakness in the U.S. dollar index, as well as ideas yesterday's losses were overdone. Soybean futures are chopping in a consolidation range, with support at the bottom of the range challenged yesterday. Bouncing from that level this morning signals bulls aren't willing to completely fold their cards, quite yet... but fresh positive news is needed to move the next leg higher.
Wheat: 2 to 5 cents higher. Wheat remains in a follower's role and saw light short-covering overnight. Wheat's technicals have turned more bearish -- more so than corn as May Chicago wheat is hovering above critical support at the January and March lows.
Live cattle: Higher. Futures are expected to be supported this morning from yesterday's sharp gains in the beef market. Choice values surged $2.75 and Select rose $3.16 on decent movement of 160 loads. Strong gains made in the beef market suggest a seasonal low is in place, which points to firmer cash cattle trade this week and support for futures.
Lean Hogs: Steady to firmer. Futures are expected to be firmer amid short-covering on ideas the downside has been overdone. Also supportive for futures this morning is yesterday's 84 cent gains in the pork cutout market, although movement was anemic at just 31 loads changing hands. The cash hog market is expected to be steady to weaker today as packers work to improve profit margins, which will limit buying interest to short-covering.