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Overnight highlights. Following are highlights of overnight trade (as of 6:30 a.m. CT) and opening livestock calls:
Corn: Steady to 3 cents higher. Futures saw light short-covering overnight after yesterday's losses. Futures were pressured yesterday by rumors China had canceled corn sales, but this is mere speculation. Buying this morning will be limited by negative outside markets, as the U.S. dollar index is stronger again this morning amid euro-zone worries. Pressure is being limited by spreading with soybeans and wheat and concerns about dryness in the U.S. Corn Belt.
Soybeans: 16 to 19 cents lower. Futures were lower overnight on followthrough from yesterday's sharp losses. The U.S. Dollar index is higher as all eyes are on euro-zone leaders this morning as they meet to discuss the financial crisis. Additional pressure is coming from talk China has canceled some soybean purchases due to negative crushing margins.
Wheat: 12 to 14 cents lower. Futures saw sharp followthrough pressure overnight from yesterday's losses, as well as from strength in the U.S. Dollar index. Concerns about a worsening euro-zone debt crisis has triggered a sharp rally in the dollar, as investors fear leaders will not come up with an aggressive enough plan to solve the problem
Live cattle: Mixed. Futures are expected to be mixed as traders wait on cash cattle trade to begin. Beef values were mixed yesterday, with Choice down 31 cents and Select up 57 cents on strong movement of 215 loads. Given this week's larger showlists, packers have the upper hand in cash negotiations. Early expectations are for steady trade with last week.
Lean Hogs: Lower. Futures are expected to be pressured today after pork cutout values slipped $2.09 yesterday to push packers' profit margins back to deep-in-the-red levels. As a result, the cash hog market is called lower today amid lighter demand, as packers say they are having no difficulty securing supplies and will work on improving ailing margins.