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Overnight highlights. Following are highlights as of 7:00 a.m. CT and opening livestock calls:
Corn: 4 to 5 cents higher. Futures are seeing a lift on spillover from sharp gains in the soybean pit, as well as help from a stronger U.S. dollar index. Day 1 of the Pro Farmer Midwest Crop Tour revealed about what traders' expected -- crops have been cut sharply by the drought in Ohio and South Dakota. Tonight, results from Nebraska and Indiana will be released. September corn is pivoting around $8.20 this morning.
Soybeans: 13 to 25 cents higher. Soybean futures rallied to new highs overnight, with November beans posting a contract high of $17.09 (so far) and trading near session highs. September beans are challenging the contract high of $17.30. Concerns about the crop were verified by the first day of the Pro Farmer Midwest Crop Tour and traders will be watching for results from Nebraska and Indiana to see if there is any improvement to crop prospects.
Wheat: 5 to 7 cents higher. Wheat is enjoying spillover from neighboring pits and help from a weaker U.S. dollar index. However, there's little other fresh news for the market to digest, as traders are cautious on signs U.S. wheat prices are not competitive on the global market. September Chicago wheat is testing $8.90 this morning to continue its bounce from the $8.40 level.
Live cattle: Steady to higher. Futures are expected to find support from a solid start to the beef market for the week. Choice beef values rose 82 cents and Select rose 53 cents to start the week on solid movement of 109 loads. This week's showlist is smaller than last week, so if the beef market continues to strengthen, traders will be comfortable adding a premium into nearby futures to last week's $120 to $121 cash cattle trade.
Lean Hogs: Mixed. Futures ended the day narrowly mixed yesterday, which was well off session highs. Another choppy day of trade is likely ahead as traders weigh improvement in the pork cutout market against rising market-ready supplies. Pork cutout values firmed 46 cents yesterday, but movement was slow at 36.25 loads. While packers' are dealing with profitable margins, they aren't willing to raise bids as supplies are largely booked well into the week.