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Overnight highlights. Following are highlights of overnight trade and opening calls:
Corn: Narrowly mixed. Futures price action was lackluster overnight. The U.S. dollar index is slightly higher this morning, but so are crude oil and gold futures. Traders say worries about instability in the euro-zone continue to hang over the market, but with corn at "value buy" levels, pressure is seen limited. Traders will also begin to actively even positions for Wednesday morning's USDA reports. According to pre-report expectations, traders look for USDA to trim the size of the crop by around 29 million bu. from last month and for carryover to be trimmed by around 65 million Bu to a tight 801 million bushels.
Soybeans: Mixed. Nearby futures were marginally to a penny lower overnight, with deferreds steady to marginally higher in lackluster trade. Hanging over the market are ongoing concerns about the euro-zone debt situation, but traders are turning their focus to evening positions ahead of Wednesday's USDA reports. According to pre-report expectations, traders look for little change to USDA's soybean production estimate, but for around a 25-million-bu increase in carryover to around 185 million bushels.
Wheat: Narrowly mixed. Wheat was lackluster overnight, with buying limited by slight strength in the U.S. dollar index. The U.S. stock market is expected to be weaker this morning amid ongoing global macro-economic concerns. Wheat remains in a follower's role, watching corn closely. Traders are also beginning to more active even positions ahead of Wednesday's USDA reports. According to pre-report expectations, traders look for USDA to trim carryover by around 18 million Bu from last month to 819 million bushels.
Live cattle: Mixed. Futures are called to open mixed, with upside potential limited by expected weakness in the U.S. stock market. Cattle posted strong weekly gains last week amid growing export optimism. With nearby live cattle trading in line with the top of last week's cash range, it will take strength in the beef market to spur the market higher yet.
Lean Hogs: Mixed. Futures are expected to be mixed amid spreading. Pressure on nearbys should be limited by the discount they hold to the cash index, but sharp pressure on pork cutout values last week makes traders comfortable with the discount structure. The cash market is called steady to weaker as packers work to improve profit margins.