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Overnight highlights. Following are highlights of overnight trade:
Corn: 1 to 3 cents lower. Futures faced light profit-taking overnight amid a choppy dollar index. Traders remain concerned about the Argentine corn crop, however, as the government lowered its estimate of the crop and there are few changes for rains in the near-term forecast.
Soybeans: 8 to 12 cents lower. Futures saw profit-taking overnight, but key this morning will be if traders view the setback as a buying opportunity as bulls have near-term momentum on their side. Recent rains have benefited soybeans in South America, but without rain in the near-term forecast, concerns have resurfaced about yield potential.
Wheat: 3 to 5 cents lower. Futures remain in a follower's role and saw spillover from neighboring pits overnight. Some demand improvement is helping wheat find a level of support, although more demand news is needed to secure a near-term low.
Live cattle: Higher. Futures are expected to see a boost from yesterday's sharp gains in the boxed beef market. But it's uncertain if that will transfer to higher cash cattle bids this week. Given packers' negative profit margins and feedlots demands for higher prices, cash negotiations are likely to extend well into the week.
Lean Hogs: Mixed. Futures are called to open mixed based on expectations for mostly steady cash hog bids today. Upside potential will be limited by strength in the U.S. dollar index, while pressure will be limited by some packers that are still in need for hogs this week. Pork cutout values slipped 37 cents yesterday to keep packers' profit margins tight.