Dollar Weakens on Cyprus Bailout Deal

March 25, 2013 01:22 AM

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Overnight highlights. Following are opening grain and livestock calls at 6:20 a.m. CT:

Corn: Mixed. May through March corn futures are marginally to 2 cents lower, with far-deferred futures marginally higher. The U.S. dollar index is weaker this morning on news the euro-zone has come up with a plan to bail out Cyprus. But with little fresh news for corn traders to digest and traders' focus to be on evening positions ahead of Thursday's key USDA reports, upside potential is limited.

Soybeans: Mixed. May through august futures are 7 to 9 cents lower amid profit-taking, with deferred futures mixed. May soybean futures are seeing followthrough from Friday's losses, as traders suspect demand for U.S. soybeans has softened as the world's focus is on booking Brazilian supplies. Still, with old-crop soybean supplies tight and shipping delays in Brazil ongoing, pressure should be limited as importers could return to the U.S. without warning.

Wheat: 1 to 2 cents lower. Futures are weaker on spillover from neighboring pits, but with little fresh news for the market to digest, pressure is being limited. Weakness in the U.S. dollar is also limiting pressure on wheat futures. But the market needs a dose of fresh demand news to keep bulls interested.

Live cattle: Higher. Futures are called higher in reaction to Friday's Cattle on Feed Report that reflected a tightening supply situation. The Placements category came well below expectations at 86% of year-ago, which suggests a sharp tightening of available calves and a resulting sharp tightening of marketings later this year. But traders' focus is also on the boxed beef market and consumer resistance to high prices could limit bullish enthusiasm.

Lean hogs: Mixed. Lean hog futures are expected to see a choppy start as traders weigh spillover from live cattle against concerns about pork demand. Friday's Cold Storage Report showed pork stocks just above expectations, which represents a 5% increase from last month. Packers say they will have no trouble securing needs for this week's holiday shortened kill schedule.


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