Dollar Weakness Lifts Grains Overnight

March 8, 2012 12:45 AM

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Overnight highlights. Following are highlights of overnight trade:

Corn: 4 to 7 cent higher. Futures enjoyed short-covering overnight thanks to weakness in the U.S. dollar index and positioning ahead of tomorrow morning's USDA S&D Report. The dollar is weaker this morning on news Greece is moving closer to finalizing an agreement with its private-sector bondholders. This morning's open will also be directed by the weekly export sales data. Another week of stronger-than-needed sales is expected.

Soybeans: 5 to 6 cents higher. Futures were supported overnight by weakness in the U.S. dollar index, as well as expected tomorrow morning's USDA S&D Reports will show a drop in the South American crops as well as U.S. 2011-12 carryover. Technicals remain positive, with March soybeans pivoting around $13.30.

Wheat: 5 to 7 cents higher. Ideas recent losses were overdone encouraged some short-covering overnight. Weakness in the U.S. dollar index is also providing widespread buying to the commodity sector. The dollar index has moved sharply lower in reaction to expectations Greece will secure its needed funding to avoid a default.

Live cattle: Mixed. Futures are expected to be mixed this morning, with pressure limited by positive outside markets. Still, traders believe a near-term high has been posted, as the beef market has been choppy this week. Choice beef prices were 58 cents weaker yesterday and Select rose 33 cents. Movement picked up at 269 loads. Cash cattle trade is complete for the week, coming in at $127 -- $3 lower than last week.

Lean Hogs: Mixed. Futures are expected to be mixed, with some support coming from yesterday's 57-cent improvement in pork cutout values. However, packers' profit margins remain well in the red and the cash hog market is expected to be steady to weaker again today. Positive outside markets should limit pressure on futures.


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