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Overnight highlights. Following are opening grain and livestock calls at 6:30 a.m. CT:
Corn: Marginally to 1 cent lower. Once again, corn is not generating spillover support from the soybean market. Buying is being limited to short-covering due to ideas the weather pattern is changing due to the storm moving into the western Corn Belt this morning. While a positive development for soil moisture, much more precip is needed to mend the drought. Corn futures remain within the boundaries of the week-long consolidation range.
Soybeans: 6 to 10 cents higher. Futures are seeing followthrough buying after yesterday's sharp gains to strongly suggest a near-term low has been posted. Much of the support is from the tight supply situation, as its largely commercially driven. Traders are reacting to concerns about shipping delays in Brazil, which could extend the sales season for U.S. soybeans. China's purchase of U.S. old-crop soybeans yesterday signaled the country has not fully switched its thoughts to Brazilian supplies.
Wheat: Mixed. Futures are mixed this morning on spillover from corn, with pressure being limited by gains in the bean pit. Wheat clearly needs a constant flow of demand news to keep bulls interested. Until that happens, traders will view U.S. prices as not competitive on the global market. A condition report from Texas revealed the crop is in worse shape than when it went into dormancy, but recent moisture has helped to stabilize the crop.
Live cattle: Mixed. Futures are expected to see a choppy start on short-covering vs. concerns about the cash market. A winter storm will begin to move across the western Corn Belt today and recent cold temps are a stress to animals. But until traders believe a seasonal low has been posted in the boxed beef market, upside potential will be limited. The beef market started the week on solid footing, but still has more to prove before traders will believe a low has been posted.
Lean hogs: Mixed. Futures are expected to see some short-covering on ideas recent losses were overdone, but upside potential will be limited due to negative attitudes toward the cash market. Futures are oversold and due for a corrective bounce, but the cash market is called steady to lower as packers work to improve negative profit margins. On a positive note, pork cutout values firmed $1.48 yesterday to spur talk of a near-term low being in the works.