** OPENING GRAIN CALLS **
Corn: 2 to 4 cents lower; light followthrough selling.
Wheat: Mixed; price action choppy overnight, light short-covering.
Soybeans: 3 to 5 cents lower; dollar firmer, light followthrough.
Meal: $1 to $2 lower; spillover from soybeans.
Soyoil: 20 to 30 points lower; spillover from soybeans.
Corn and soybean futures were weaker overnight on light followthrough
pressure from yesterday's sharp losses, while wheat was mixed amid some
light short-covering. The overbought condition of the market has been
corrected and bull-market corrections are healthy. However, key will be if traders view recent weakness as a buying opportunity or if the February break is extended.
Adding to pressure in the soybean market overnight was news China's
Ministry of Commerce expects soybean imports to decline by 64% this month compared to January's total. But if realized, the estimate would still represent a 6% increase from last February.
USDA announced a daily wheat sale of 100,000 metric tons (MT) of hard
red winter wheat to Iraq for 2010-11. The news, however, was announced by private trade sources earlier this week, so it will have little market impact. Traders are waiting on results from an Egyptian wheat tender.
** OPENING LIVESTOCK CALLS **
Live cattle: Slightly higher; expecting higher cash trade.
Feeder cattle: Slightly higher; weakness in corn market supportive.
Lean hogs: Slightly higher; upside limited by cash weakness.
Livestock futures are called to open slightly higher, with some
spillover support expected from the U.S. stock market. Much of the
support, however, will be generated by expectations for continued strong exports of U.S. red meat, which is helping to offset any decline in domestic demand due to high meat prices.
Traders in the cattle pit are anticipating $1 to $2 higher cash cattle prices compared with last week's $106 to $107 trade, but that could be delayed until later in the week given the lack of active bidding. This week's showlist is smaller than last week and the beef market has posted a solid performance so far this week.
Meanwhile, the cash hog market is called steady to $1 lower, which will limit buying in the nearby contracts. Packers say this week's supplies have been largely booked and slaughter schedules have been reduced due to sluggish domestic demand. Packers are planning on a light Saturday kill.