Soybeans Upside Leader Overnight

06:38AM Aug 29, 2012
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Overnight highlights. Following are highlights of overnight trade (as of 6:40 a.m. CT) and opening livestock calls:

Corn: 8 to 9 cents higher. Futures are being supported this morning by concerns heavy wind and rains in the South and southern Corn Belt could topple corn due to weak stocks, as well as cause further quality concerns due to the pushed maturity of this year's crop. December corn has returned above $8.00 this morning to remain within the boundaries of this month's choppy trading range.

Soybeans: 9 to 14 cents higher. Futures are stronger this morning amid concerns heavy rains in the southern U.S. could damage soybeans, although some fields in the southern Midwest could still use a drink to fill pods. Traders are also noting that prices have yet slowed demand dramatically, as China continues to buy beans. November soybeans are back at the top of the recent consolidation range, signaling bulls remain clearly in control of price action.

Wheat: 8 to 13 cents higher. Wheat is benefited from spillover from neighboring pits, as well as renewed talk Russia will soon announce measures to curb exports -- although it recently said it has no such plans. There are also concerns about too-dry conditions in western Australia damaging the winter wheat there.

Live cattle: Mixed. Futures are expected to be mixed as traders wait on cash cattle trade for direction. Boxed beef prices were 7 (Choice) to 23 (Select) cents lower yesterday on lackluster movement of 135 loads. Even though this week's showlist is smaller, there's little demand for cattle ahead of the extended holiday weekend, which limits upside potential for nearby futures.

Lean hogs: Mixed. Futures are expected to be choppy as traders even positions, with pressure limited by the already steep discount nearby contracts hold to the cash index. But upside potential will be limited by ongoing weakness in the pork cutout market. Pork values slipped another $1.46 yesterday, but the good news is movement improved to 123.25 loads. The cash market is called $1 to $3 lower today as packers are having no difficulty securing needed supplies.