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Overnight highlights. Following are highlights of overnight trade and opening calls:
Corn: 6 to 8 cents higher. Nearby corn futures saw strong followthrough buying in overnight trade from last week's gains. December corn came within a penny of $7.80 overnight. Acceleration of the rally could result in a market top sooner rather than later, if this pace of price gains continues. Also helping to lift the market was weakness in the U.S. dollar. Traders are reacting to concerns about the U.S. corn crop, as the Midwest Crop Tour confirmed their fears.
Soybeans: 12 to 15 cents higher. Futures saw followthrough buying in overnight trade from Friday's breakout above the long-lasting consolidation range. A higher close today would be a very bullish signal, opening fresh upside potential. Bulls next upward target for November beans is $14.50. Weakness in the dollar also added to strength in overnight trade.
Wheat: 2 to 6 cents higher. Futures were stronger overnight on spillover from neighboring pits and dollar weakness. Wheat futures took on the role of leadership off and on last week, as traders remain concerned about U.S. production, as well as rains hampering harvest in Germany. December Chicago wheat rose above $8.00 overnight. The contract has posted a close above $8.00 since June 14.
Live cattle: Mixed. Futures are called to open mixed, with pressure limited by expected strength in the U.S. stock market this morning. Investors are breathing a sign of relief after Hurricane Irene caused less damage than expected. Traders will be monitoring the boxed beef market this week for signs of weekend demand, as the weather event may have impacted East Coast demand.
Lean hogs: Mixed. Upside potential in the lean hog market will be limited by the cash market, which is called steady to lower as packers work to improve profit margins amid growing supplies. However, with nearby futures trading at a steep discount to the cash index and outside markets positive, pressure should be limited and some spreading is possible.
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