Light Profit-Taking in Soybeans Overnight

April 23, 2012 01:26 AM

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Overnight highlights. Following are highlights of overnight trade:

Corn: Mixed. Futures were mixed overnight, with nearbys favoring a firmer tone and new-crop futures slightly lower amid bull spreading. Strength in the U.S. dollar index is limiting buying this morning, although given renewed concerns about the euro-zone, the ability of old-crop futures to trade near unchanged is somewhat impressive.

Soybeans: 2 to 4 cents lower. Following Friday's surge into the close on talk Brazil would limit soybean exports, soybeans are seeing just light profit-taking pressure. Again, given strength in the U.S. dollar index, it's impressive to see soybeans just slightly lower, signaling attitudes are bullish as traders anticipate the tight stocks situation to continue into the upcoming year.

Wheat: Marginally to 1 cent lower. Futures followed neighboring pits overnight, seeing just slight losses despite strength in the dollar index. Wheat remains in a follower's role due to expectations global supplies will be plentiful in the coming year -- therefore limiting upside potential. But ideas the market is overdone to the downside also helped to limit pressure overnight.

Live cattle: Mixed. Futures are expected to be mixed as Friday's Cattle on Feed Report came in about as expected, returning focus to the beef market. However, Friday's Cold Storage Report showed stocks at the highest level since November 2006 -- raising concerns about demand. But traders will have all eyes on the beef market to see if the worst is behind, as values surged last week and movement improved.

Lean Hogs: Mixed. Futures are expected to be mixed, with upside potential limited by expected weakness in the U.S. stock market. Meanwhile, Friday's Cold Storage Report showed pork stocks in frozen storage below expectations. Still, the cash hog market is expected to be steady to weaker as packers work to improve ailing margins. This week's supplies are thought to be tighter, but packers say in order for bids to improve, pork values need to improve.


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