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Overnight highlights. Following are highlights of overnight trade:
Corn: 3 to 5 cents lower. Futures were pressured overnight by negative outside markets, with pressure limited by ideas the downside is already overdone. But another "risk-off" day of trade is ahead as crude oil and gold are lower due to ongoing concerns about Greece leaving the euro-zone. Adding to weakness overnight was a report from the China National Grain and Oils Information Center that placed the country's corn crop at a record 197.5 million metric tons (MMT), partly due to a 2.6% increase in acreage.
Soybeans: 15 to 20 cents lower. Highly volatile price action continues in the soybean market -- up one day and down the next. Overnight, soybean futures were pressured by heightened concerns that Greece will leave the euro, as politicians in the battered country have failed after six tries to form a new government. See "What Traders Are Talking About" for more. However supportive for the market this morning is news the China National Grain and Oils Information Center expects the country's 2012-13 soybean imports at 58 MMT, up 3 MMT from it's forecast last month. However, macro-economic headwinds have traders' attention this morning.
Wheat: 1 to 4 cents lower. Futures were slightly lower overnight in light volume trade, with pressure limited by renewed concerns about hot and dry conditions in the Southern Plains stressing the winter wheat crop. Harvest has begun earlier than usual due to the early start of the growing season, and crop watchers say early yields are disappointing. But yields are expected to improve as harvest progresses unless the hot and dry spell continues.
Live cattle: Mixed. Futures are expected to be mixed this morning, with upside potential limited by negative outside markets. Meanwhile, cash opinions are rising due to strength in the beef market Choice values have risen back above $191.00-per-cwt. and Select values were up $1.38 yesterday. Movement was solid at 209 loads yesterday. This, combined with a smaller showlist has traders looking for at least a dollar increase in the cash market from last week's $120 trade in the Southern Plains.
Lean Hogs: Mixed. Futures are expected to be mixed this morning, with traders pulled between improvement in the pork cutout market and negative outside markets. Pork cutout values rose 25 cents yesterday, but packers say margins slip back into the red. This could temper packers' enthusiasm to buy hogs -- resulting in pressure on the cash market.