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Overnight highlights. Following are highlights of overnight trade:
Corn: Steady to 4 cents lower. Futures were mostly weaker overnight, with pressure coming from negative outside markets due to uncertainties in the euro-zone after Greece failed to form a new government over the weekend. German bonds rose to new record highs overnight, with Spanish and Italian bond yields also rising due to concerns the unsettled political atmosphere in Greece could lead to a breakdown of the euro.
Soybeans: 20 to 30 cents lower. Fund selling in the soybean pit was active overnight due to spillover from negative outside markets. News the People's Bank of China cut its bank reserve requirements again over the weekend were ignored by the market, as traders are more concerned about the unsettled atmosphere in the euro-zone. As a result, bean futures did more technical chart damage overnight, with August beans dropping below $13.80 as sell stops were triggered.
Wheat: 4 to 5 cents lower. Futures saw spillover from neighboring pits and outside markets overnight. Wheat is in a follower's role, with technical bearish following last week's round of fresh contract lows. Next support for July Chicago wheat is the psychological $5.90 level, with support layered every dime below that level.
Live cattle: Steady to weaker. Futures are expected to be lower based on negative outside markets that are creating a "risk-off" atmosphere in the commodity markets. Meanwhile, cash cattle trade developed late Friday in Kansas and Texas at $120, basically steady with the previous week. This is slightly supportive for futures, as nearbys are trading at a discount to the cash market. Traders will keep a close eye on the beef market early this week after prices softened late last week.
Lean Hogs: Steady to weaker. Futures are expected to be weaker based on spillover from negative outside markets. Pressure, however, should be limited by firmer pork cutout values on Friday, which could help to improve demand for cash hogs as packers' profit margins have finally returned to the black. The U.S. stock market is set for a weaker start due to new concerns about the stability of the euro-zone.