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Overnight highlights. Following are highlights of overnight trade (as of 6:30 a.m. CT) and opening livestock calls:
Corn: 5 to 6 cents lower. Futures have moved off earlier lows, but remain under pressure after heavier-than-expected rains swept across the Corn Belt this weekend. Traders realize rains won't do much to help the ailing crop, but it certainly makes it more difficult for futures to rally. Strength in the U.S. dollar index is also negative for commodity markets this morning.
Soybeans: 30-plus cents lower. Futures futures moved off earlier lows, but remain under sharp pressure after weekend rains were more widespread than expected. The soybean crop can still benefit from a rain, as plants have the ability to set more pods if conditions continue to be more favorable.
Wheat: 3 to 6 cents lower. Chicago and Kansas City futures are weaker, while Minneapolis is firmer this morning. But it will be difficult for Minneapolis to hold onto gains if corn and soybeans remain under pressure this morning. The U.S. dollar index is stronger this morning on followthrough from an upbeat jobs report and as yields on Spanish and Italian bonds continue to decline.
Live cattle: Mixed. Futures are expected to see a choppy start as traders wait on cash cattle signals to emerge. August live cattle are trading at around a $2 premium to last week's $118 cash cattle trade, so to build on last week's cash performance, the beef market must continue to strengthen. Feeder cattle futures are expected to find support from weakness in the corn market.
Lean Hogs: Mixed. Futures are expected to see a choppy start, with pressure limited by weakness in the corn market and the discount nearby contracts hold to the cash index. Pork cutout values were 37 cents firmer on Friday to help lift packers' profit margins into the black, but demand for cash supplies is still expected to be lackluster amid a seasonal increase in supplies.