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Overnight highlights. Following are highlights of overnight trade (as of 6:20 a.m. CT) and opening livestock calls:
Corn: Mixed. July corn is around 3 cents higher this morning, with the rest of the market mostly around a penny lower this morning. New-crop futures were pressured by strength in the U.S. dollar index as well as rains that moved across the Corn Belt. But there is still concern about rains this week weren't widespread enough ahead of next week's forecast warmer and drier period.
Soybeans: 7 to 11 cents lower. Futures were pressured overnight by strength in the U.S. dollar index. Investors are reacting to disappointing Chinese manufacturing data, which raises concern the country may be headed to a hard landing. This morning's U.S. jobs data will also influence investors' attitudes this morning and all signs point to a "risk-off" start to the month.
Wheat: 3 to 5 cents lower. Futures were pressured overnight by disappointing Chinese manufacturing data, as well as beneficial rains across much of Europe, Ukraine and Russia. Meanwhile, harvest-related hedge pressure is beginning to build in the U.S., although harvest results remain mixed.
Live cattle: Mixed. Futures are expected to be mixed as traders wait on cash cattle trade to begin. Pressure on futures from outside markets should be limited by the fact nearbys remain at a discount to last week's cash trade. And, expectations are for at least $1 higher trade given strength in the beef market so far this week.
Lean Hogs: Steady to higher. Futures are expected to build on yesterday's strength thanks to continued improvement in the pork cutout market. Pork cutout values improved another $1.17 yesterday to aid packers' profit margins, although they remain in the red. The cash market is called mixed to start the week due to variable demand. Some locations are still in need of supplies, but packers are hesitant to push bids too far to the upside given negative margins.