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Overnight highlights. Following are highlights of overnight trade (as of 6:30 a.m. CT) and opening livestock calls:
Corn: 1 to 3 cents higher. Nearby corn is mostly around 3 cents higher this morning on short-covering and continued deterioration of the crop. Yesterday's condition report showed half of the crop rated "poor" to "very poor," reminding the market of the very poor finish to the crop. Traders are turning their focus to position squaring ahead of USDA's first survey-based crop estimate on Friday. This also helped to support futures overnight.
Soybeans: 11 to 14 cents higher. Futures benefited from short-covering overnight, gaining back a portion of Monday's sharp sell-off. Yesterday's condition report showed the crop had declined slightly, as more of the crop moved into "poor" to "very poor" shape than to the "excellent" category. Key will be if traders decide to rebuild their long positions after the recent round of profit-taking.
Wheat: Mixed. Futures are favoring a firmer tone, but are seeing some scattered buying to result in a choppy tone this morning. Pressure is being limited by positive outside markets, as well as ongoing concerns about crop prospects overseas. Traders look for Friday's S&D Report to show tightening global supplies.
Live cattle: Steady to higher. Futures are expected to see a lift from the solid start to the beef market and positive outside markets. Choice beef values rose 35 cents yesterday and Select was up 77 cents on strong movement of 196 loads. This week's cattle showlist is down overall from last week, which should give feedlots more bargaining power in cash negotiations.
Lean Hogs: Steady to higher. Futures are expected to be firmer this morning on help from the pork market. Pork cutout values were $1.10 higher yesterday to lift packers' profit margins and hopefully improve demand for cash supplies. The cash market is expected to be mostly steady today, but some weaker tone are still expected as packers say they are having no difficulty securing needed supplies.