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Overnight highlights. Following are highlights of overnight trade (as of 6:45 a.m. CT) and opening livestock calls:
Corn: 18 to 22 cents higher. Futures were lifted overnight by concerns about a hot and dry near-term weather forecast, raising concerns about moisture availability for early pollinating corn. December corn gapped higher on the open and rose to its highest level since early February. The contract is testing $5.80.
Soybeans: 32 to 45 cents higher. Futures gapped higher on the open and have sharply extended gains on concerns about a lack of moisture for much of the Midwest crop. Traders wonder how much of the second-crop soybeans in the eastern Corn Belt will be planted due to limited moisture availability. November beans are pivoting around $14.20 this morning, turning $14.00 into support.
Wheat: 15 to 18 cents higher. Futures are seeing spillover from sharp gains in the corn and soybean markets, as well as concerns about dryness in areas of Europe and the former Soviet Union. September Chicago wheat has returned above $7.00.
Live cattle: Lower. Futures are expected to be pressured after Friday's Cattle on Feed Report showed On Feed and Placements above expectations and Marketings lighter than expected. Traders will be keeping a close tab on the beef market for cash clues this week after cash traded $3 lower last week at $116 in the Southern Plains.
Lean Hogs: Steady to higher. Futures are expected to be supported this morning by pork market strength. Pork cutout values rose $2.35 to close last week and Friday's Cold Storage Report showed stocks below expectations. While packers' profit margins are still in the red, the cash hog market is expected to be steady to firmer amid tightening supplies.