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Overnight highlights. Following are highlights of overnight trade (as of 6:35 a.m. CT) and opening livestock calls:
Corn: 1 to 4 cents lower. Futures sank into the close yesterday on news of a large purchase of Brazilian corn has been made by feed buyers in the Southeast. Futures saw followthrough pressure overnight, with additional pressure coming from traders lightening their exposure to the market ahead of tomorrow morning's grain stocks data, which will set carryover for 2011-12.
Soybeans: 2 to 5 cents lower. Pressure on soybean futures was limited overnight on news China's central bank has injected more money into its economy to promote economic growth. Meanwhile, soybean futures saw sharp losses in late trade yesterday to do more technical chart damage. Ongoing harvest progress is weighing on the market.
Wheat: 2 to 4 cents lower. Futures are seeing spillover from neighboring pits, as well as from forecasts for rains in the U.S. Southern Plains and recent rains in Australia. But meanwhile, wheat supplies in the Black Sea region are tightening, which is expected to boost demand for U.S. wheat sometime this fall. No technical chart damage has been done this week, as support levels are being respected.
Live cattle: Mixed. Ideas recent losses have been overdone is expected to limit pressure on futures today and result in some short-covering. Cash cattle trade got underway yesterday at $123, which is down $3 from last week. The bulk of sales is expected to come in at that level given recent pressure on futures. With October live cattle trading at a slight discount to this week's cash trade, there is some room for short-covering.
Lean hogs: Steady to firmer. Futures are expected to see a lift as traders even positions ahead of Friday afternoon's Quarterly Hogs & Pigs Report and from ongoing cash firmness. Pork cutout values were firmer again yesterday on solid movement, pointing to steady to firmer cash hog bids again today. But with packers' profit margins tightening, pork cutout values need to improve even more in order to keep packers raising bids.