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Overnight highlights. Following are highlights of overnight trade (as of 6:15 a.m. CT) and opening livestock calls:
Corn: 6 to 7 cents higher. After end-of-the-month profit-taking pressure, traders returned overnight to view corn as a value buy. Although there's little fresh news for the market to digest, corn supplies are tight. Dollar weakness is also helping to attract short-covering to corn futures this morning.
Soybeans: 10 to 16 cents higher. Futures are higher this morning, with nearbys leading gains, on ideas recent losses were overdone. Traders took some profits out of the market late last week as they closed their books for the month, but buyers returned overnight. January beans have seen trade above last week's high to keep the near-term technical situation pointed higher.
Wheat: 6 to 9 cents higher. Futures are stronger this morning on help from dollar weakness, concerns about the weather in the U.S. Plains and from news Egypt included some U.S. wheat in its latest purchase. Over the weekend, Egypt purchased 285,000 MT of Romanian, U.S. and French wheat for January delivery, as well as 115,000 MT of U.S. wheat for February delivery.
Live cattle: Mixed. Futures are expected to see a mixed start as traders wait on direction from the beef market. Choice beef values slipped a dollar on Friday and Select declined by 70 cents and light cash cattle trade in Kansas was $2 lower than the previous week. Outside markets will also have an influence on cattle futures, as traders focus on fiscal cliff negotiations in Washington. Little progress was made over the weekend, which is expected to weigh on the U.S. stock market this morning.
Lean hogs: Mixed. Futures are expected to be mixed as traders look to outside markets for direction, as well as get direction from the cash hog market. Cash bids are expected to be steady to firmer as packers are short bought to start the week and market-ready supplies have tightened. Strong holiday pork demand will also help to limit pressure from concerns about the lack of progress in fiscal cliff negotiations.