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Overnight highlights. Following are highlights of overnight trade (as of 6:50 a.m. CT) and opening livestock calls:
Corn: 2 to 4 cents higher. Futures are firmer despite dollar strength, as traders are concerned about the crop given this week's warmer and drier outlook. Yesterday's NWS 6-10 day forecast called for warmer temps to extend into next week, but for normal rains to resume, which could help sustain crops.
Soybeans: 5 to 11 cents higher. Futures saw a lift overnight from weather concerns and continued strong demand after USDA announced a daily sale to China yesterday. Drier conditions this week raise concerns about the condition of the crop, although a return to normal rains is expected next week according to the NWS's 6-10 day outlook. Still, the outlook is hot and dry for the Mid-South, where soybeans are struggling.
Wheat: Mixed. Chicago and Kansas City are favoring a weaker tone, with Minneapolis firmer. Dollar strength is limiting buying to short-covering, as traders view the increase of harvest-related hedge pressure as the dominate force in the market for the timebeing.
Live cattle: Steady to firmer. Futures are expected to see light support from yesterday's firmer boxed beef values, as well as the discount nearbys hold to last week's cash market. Choice beef values rose 37 cents and Select was up 13 cents on moderate movement of 161 loads. Traders will want to see movement improve through the week given this week's larger showlist, which means cash expectations are up in the air at this point.
Lean Hogs: Steady to firmer. Futures should see light support this morning from yesterday's 63-cent improvement in pork cutout values. However, with packers' profit margins still in the red, the cash market is expected to be mixed amid varied demand.