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Overnight highlights. Following are highlights of overnight trade (as of 6:30 a.m. CT) and opening livestock calls:
Corn: 1 to 3 cents lower. Futures are slightly lower overnight, but have seen choppy, directionless trade. December corn is pivoting around $8.00 as traders reevaluate positions. Signs of demand destruction is limiting upside potential. So without fresh positive news, the market is likely to drift lower. Soybeans: 3 to 6 cents lower. Futures have been choppy overnight, but are currently weaker amid a lack of fresh positive news. Traders remain concerned about the disappointing crop, but say weather is factored into prices. Yesterday’s crop condition report showed deterioration in the crop, which is helping to limit pressure, but without fresh news, the market is vulnerable to more profit-taking. Wheat: Mixed. Wheat is currently mixed, with Chicago favoring a weaker tone. There’s little fresh news for the market to focus on. The recent Egyptian wheat purchases that didn’t include any U.S. wheat signals prices here are no longer competitive.
Live cattle: Steady to lower. Futures are vulnerable to more selling given concerns about the beef market. Choice values slipped 16 cents yesterday and Select was down $1.36 on decent movement of 136 loads. This week’s showlist is down slightly from last week, but so far cash sources say packers’ needs to be lighter, which could lead to steady to lower cash trade later this week. Lean hogs: Steady to lower. Futures are expected to be pressured by ongoing weakness in the pork cutout market, as values were $1.60 lower to start the week. Futures enjoyed some short-covering yesterday, but due to ongoing concerns about the pork market, it will be difficult to generate followthrough buying this morning.
