Corn and Soybeans Higher on Weather Concerns

June 27, 2012 01:57 AM

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Overnight highlights. Following are highlights of overnight trade (as of 6:45 a.m. CT) and opening livestock calls:

Corn: 9 to 10 cents higher. Futures are stronger this morning amid weather concerns, with Corn has extended early gains as a dome of high pressure moves into the Midwest. Stressful conditions are expected to deteriorate crops this week, with limited rain chances this weekend.

Soybeans: 11 to 18 cents higher. Futures have extended early gains on weather concerns, as traders worry producers in the eastern Corn Belt will delay planting of second-crop soybeans until a rain is received. Resistance for November beans stands at yesterday's high of $14.38 3/4. A move through that level could trigger buy stops.

Wheat: Mixed. Futures is mixed this morning, with Chicago and Kansas City under light pressure and Minneapolis favoring a firmer tone. Wheat remains in a follower's role, closely watching corn and soybeans. As a result, look for wheat to turn higher if corn continues its climb.

Live cattle: Mixed. Futures are expected to start the day mixed amid some short-covering. Choice beef values rose $1.31 yesterday and Select was up 19 cents on strong movement of 181 loads. Traders are comfortable with the discount nearby live cattle hold to last week's $116 cash cattle trade, signaling they expect steady to weaker trade later this week, which will limit buying this morning.

Lean Hogs: Mixed. Futures are called to start the day mixed on some short-covering. Pork cutout values slipped $1.83 yesterday to further tighten packers' profit margins, but movement improved to 81.75 loads. The cash hog market is called mixed today amid varied demand, as some packers have reduced kill hours to address negative margins.


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