Quiet Overnight Trade Amid Dollar Strength

March 2, 2012 12:26 AM

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Overnight highlights. Following are highlights of overnight trade:

Corn: Mixed. Futures were mixed overnight, with nearbys slightly weaker. As long as the market doesn't fall apart today, it's poised for a high-range close for the week, which is important for bulls. Traders have become less concerned about the tightness of old-crop stocks given prospects for a big 2012 crop, but that's far from being in the bin.

Soybeans: 1 to 2 cents lower. Futures were weaker overnight amid profit-taking, as well as strength in the U.S. dollar index. But limiting pressure on beans overnight is the prospect of tightening carryover for the upcoming marketing year amid strong demand. Soybean futures are poised to post strong weekly gains, confirming the upside breakout above the October highs.

Wheat: 1 to 3 cents lower. Wheat are seeing spillover from neighboring pits, as well as pressure from a strengthening U.S. dollar The dollar index has moved to a fresh weekly high amid improved economic data. Wheat futures remain the laggard of the grain markets. While export demand has improved recently, plentiful global stocks limit buying enthusiasm in futures.

Live cattle: Mixed. Futures are expected to be mixed after beef prices softened slightly yesterday, but could see followthrough from yesterday's strong gains. Choice beef values declined 35 cents yesterday and Select values were steady amid lackluster movement of 133 loads. Still, traders expect cash trade to be at least steady with last week's levels, with most expecting $1 to $2 higher trade later today.

Lean Hogs: Mixed. Futures are expected to be mixed as traders work to even positions ahead of the weekend. Improved pork movement this week has traders hopeful for a seasonal pick up in buying, although packers' profit margins declined this week as pork cutout values slipped. The cash market is expected to be steady to weaker as packers have supplied booked into next week.


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