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Overnight highlights. Following are highlights of overnight trade and opening calls:
Corn: 6 to 8 cents higher. Futures were firmer overnight on help from dollar weakness and scaled back rains for South America. Weather models have backed off of the extremely heavy rain amounts for east-central and northern Argentina this week, but there is still rain in the forecast with this cold front. But following the rain event, the heat dome is expected to rebuild.
Soybeans: 9 to 10 cents higher. Futures were stronger overnight on help from a softer dollar and weather models backing off on how widespread and significant rains will be in Argentina this week. But forecasts say one thing is clear, some areas will see up to 4 inches of rain, it's just that the heaviest of rains will be more scattered than previously thought.
Wheat: 7 to 10 cents higher. Futures were firmer overnight on help from neighboring pits and outside markets. The U.S. dollar index is weaker this morning as investors wait on developments from a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy. The leaders are discussing their strategy for rescuing the euro and preparing for an European summit at month's end.
Live cattle: Steady to weaker. Futures ended last week on a sour note on news of $1 lower cash cattle trade. February live cattle are trading at a slight discount to the $120 trade, which is expected to help limit pressure this morning. But all eyes will be on the beef market early this week for further cash clues. If beef prices continue to soften, it will raise expectations for further cash weakness.
Lean Hogs: Mixed. Futures are expected to be mixed this morning as traders even positions and wait on the cash market for direction. Pork cutout values slipped 27 cents on Friday to further tighten packers' profit margins. Early expectations are for steady to firmer bids to start the week as packers are short bought.