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Overnight highlights. Following are highlights of overnight trade and opening calls:
Corn: 2 to 4 cents lower. Futures were pressured overnight by strength in the U.S. dollar index as well as traders evening positions ahead of tomorrow morning's barrage of USDA reports. Pressure should be limited to profit-taking however, as traders look for USDA to tighten carryover and the rain event in in Argentina has just about run its course. Check this link for pre-report expectations.
Soybeans: 8 to 14 cents lower. After yesterday's high-range close, soybean futures faced profit-taking overnight, as well as pressure from dollar strength. Traders look for USDA to trim the size of the crop and carryover slightly in tomorrow morning's report, but of more interest is what USDA does with South American crop estimates. Meanwhile, the path of the storm in Argentina has taken a more northern route, than moving northwest as expected. As a result, eastern Cordoba, Santa Fe, Entre Rios and most of Chaco and Formosa are missing the best rains.
Wheat: 4 to 6 cents lower. Futures were pressure overnight by dollar strength, but remain within the boundaries of the recent consolidation range. Traders will be focused on evening positions ahead of tomorrow morning's Winter Wheat Seedings Report, which is expected to show a 300,000 acre increase in acreage from last year. Meanwhile, traders look for USDA to trim carryover by around 47 million bu. from last month due to increased feed wheat demand.
Live cattle: Mixed. Futures are expected to be mixed following yesterday's strong gains as traders wait on cash cattle trade to begin and on some profit-taking. Dollar strength could also limit buying in the cattle pit today. Meanwhile, traders are noting positive fundamentals. Beef values were firmer yesterday on solid movement of 196 loads, although traders would like to see movement pick up. But with this week's showlist tighter than last week, pressure on futures should be limited.
Lean Hogs: Steady to weaker. Futures are expected to be pressured by yesterday's sharp drop in pork cutout values -- pushing packers' profit margins deeper into the red. Pork values were $1.35 lower yesterday on a drop in loin prices, but the good news is movement was very strong. Some eastern locations are still in need of hogs for the week, but cash bids are expected to be mixed as some locations lower bids due to negative cutting margins.