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Overnight highlights. Following are highlights of overnight trade:
Corn: Mixed. Nearby futures are mostly 3 to 5 cents lower this morning, with new-crop mixed. Old-crop futures. March corn moved above the November high briefly on Tuesday to do some technical chart improvement. But closes above this level are needed to inspire bulls. Tightening old-crop supplies amid solid demand and fresh buys from China have lifted new-crop futures. Now, fresh demand news is needed to keep the market pointed higher.
Soybeans: 1 to 7 cents higher. Futures built on yesterday's gains as attitudes remain bullish due to concerns about late-season dryness in southern Brazil and continued strong demand. Outside markets are slightly negative this morning, which limited followthrough buying overnight. November beans are technically strong, posting another close above $13.00 yesterday. Bulls' next target is $13.50.
Wheat: 3 to 6 cents lower. Futures were weaker overnight, with pressure coming from negative outside markets. The dollar is slightly firmer, crude oil is marginally lower, but told is sharply lower after the Federal Reserve left interest rates unchanged and said inflation would be contained. July Chicago wheat futures remain in a choppy consolidation range, but must hold above last week's low of $6.45 to avoid hitting sell stops.
Live cattle: Steady to firmer. Futures are expected to enjoy followthrough from yesterday's gains, although upside potential could be limited by yesterday's softer boxed beef values. Choice values slipped 98 cents and Select declined $1.35. However, traders have a favorable bias toward this week's cash market due to tighter supplies. If packers raise their bids today, it could inspire some cash trade at higher levels than last week.
Lean Hogs: Steady to firmer. Futures are expected to enjoy followthrough from yesterday's gains, as well as support from yesterday's 25-cent improvement in the pork cutout market on very strong movement of 154.75 loads. Traders are cautiously optimistic about warm weather across much of the country, as they hope it spurs an early start to grilling season and boost demand for higher-quality cuts. The cash hog market is expected to be mostly steady today, with packers' profit margins still in the red.
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