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Overnight highlights. Following are highlights of overnight trade (as of 6:30 a.m. CT) and opening livestock calls:
Corn: 4 to 6 cents lower. Futures are lower this morning amid profit-taking and from negative outside markets. The U.S. dollar is sharply higher this morning, which is putting sharp pressure on crude oil and gold futures. A credit downgrade for Spain and overseas markets reacting to Fed Chairman Ben Bernanke's comments yesterday -- which signaled no immediate additional stimulus will be offered -- are weighing on grain futures this morning.
Soybeans: 10 to 22 cents lower. Following yesterday's sharp rally into the close, futures were weaker overnight amid a surging dollar. It's interesting the U.S. markets were focused on China's unexpected rate cute yesterday and put Bernanke's comments on the backburner... but overseas markets focused on Bernanke's comments overnight, which is the supply of most of the pressure on grain markets this morning.
Wheat: 7 to 11 cents lower. Futures are seeing spillover from neighboring pits and strength in the U.S. dollar index this morning. After signaling the dollar had posted a near-term low yesterday, it is surging this morning as overseas markets are focused on yesterday's comments made by the Federal Reserve chief that signal no immediate stimulus will be offered. Also a source of pressure is stepped up harvest, although harvest results in western Kansas are disappointing.
Live cattle: Mixed. Futures are called to open mixed on followthrough from yesterday's gains vs. some profit-taking due to negative outside markets. Cash cattle trade got underway yesterday at $122, which is up from last week. Nearbys still have some work to do in order to narrow the discount they hold to the cash market.
Lean Hogs: Steady to weaker. Futures are set for a round of profit-taking due to negative outside markets and concerns about packers' profit margins. The cash market has risen more than pork cutout values this week, pushing margins deep into the red. As a result, traders are concerned demand for cash supplies will be softer next week.