Overnight highlights. Following are highlights of overnight trade (as of 6:35 a.m. CT) and opening livestock calls:
Corn: Mostly 2 cents higher. Corn is seeing spillover from the wheat pit. But otherwise there's little fresh news for the market to digest and traders are moving to the sidelines ahead of Friday's USDA reports, which are expected to show a slight drop in the size of the crop but for a slight increase in carryover due to lackluster export demand.
Soybeans: 1 to 4 cents lower. Futures are seeing a slight pullback after yesterday's gains to continue this week's choppy pattern of back-and-forth price action. Improved rain chances in northern Brazil are contributing to losses in the bean pit, as well as expectations USDA will raise the size of the U.S. crop slightly from last month. Traders look for very little net change in carryover from last month due to expectations exports will be raised.
Wheat: 3 to 5 cents higher. Wheat futures are seeing a lift from concerns about the U.S. and Australia wheat crops. But price action could remain choppy as traders position themselves ahead of Friday's USDA reports. Traders look for USDA to raise U.S. wheat carryover by around 12 million bu. from last month to 666 million bushels.
Live cattle: Mixed. Futures are expected to be choppy today as traders await direction from the cash market. Slight strength in the boxed beef market this week is raising expectations for steady cash cattle trade with last week. Choice beef values improved 63 cents and Select rose $1.16 yesterday on solid movement of 169 loads. This week's showlist is up from last week and packers are working with negative margins.
Lean hogs: Steady to weaker. Futures are expected to be pressured by concerns about the pork market. Pork values slipped $1.19 yesterday to dramatically trim packers' profit margins. As a result, the cash market is called steady to lower as packers have plenty of supplies to draw from and will work to keep margins in the black.