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Overnight highlights. Following are highlights of overnight trade:
Corn: 6 to 11 cents lower. A combination of rains over the weekend and negative outside markets weighed on corn futures overnight. While rains have slowed planting efforts, precip was badly needed to recharge soil moisture after a dry winter across the western Corn Belt and central Illinois. Meanwhile, the U.S. dollar index is stronger this morning amid euro-zone debt concerns.
Soybeans: 8 to 10 cents lower. Strength in the dollar index weighed on soybean futures overnight, as investors react to talk of possible downgrades for European banks. The soybean market needs a constant dose of positive news to keep bulls interested, and last week the market received "just enough" news to do the job. Without positive news, there is a risk of long liquidation given the large net long position held by funds.
Wheat: 5 to 7 cents lower. Futures saw pressure overnight from dollar strength, as well as from spillover from neighboring pits. Rains are in the forecast this week for dry areas of Europe, which should help in the winter wheat crop's recovery.
Live cattle: Mixed. Futures are called mixed, as general thoughts are the downside has been overdone and the market is due for a corrective recovery. However, with attitudes increasingly bearish, upside potential will be limited to short-covering unless there is confirmation of a near-term low being in place in the beef market.
Lean Hogs: Mixed. Following Friday's sharp to limit lower close, the market is due for a corrective bounce. But upside potential will be limited as traders wait on signs of a near-term low being in place. The cash hog market is expected to be mostly steady to start the week, with some weaker undertone possible as packers work to get profit margins out of the red.