Corn futures are trading 6 to 7 cents lower early morning. Corn prices pulled back during the overnight session as investors squared positions ahead of tomorrow’s USDA supply/demand report. The market is still supported by drought conditions in the Midwest, but weather worries are already priced into the market. Crop condition ratings plunged below analysts’ expectations once again. USDA reported corn condition ratings down 8 percentage points from last week at 40 percent good to excellent.

Soybean futures are trading 8 to 10 cents lower early morning. Soybean futures retracted yesterday’s gains on profit taking ahead of tomorrow’s USDA supply/demand report. Monday’s crop progress report was bullish for the market, reporting soybean condition ratings down 5 percentage points from the previous week at 40 percent good to excellent. The report also showed soybean blooming at 44 percent, well above the five year average of 25 percent.

Wheat futures are trading 8 to 15 cents lower early morning. Wheat futures declined overnight following the lead of the corn and soybean markets. Prices are under pressure as traders square positions ahead of Wednesday’s USDA supply/demand report. Monday's crop progress report reported winter wheat harvest at 75 percent complete up from 58% a year ago. Spring wheat good/excellent condition ratings were pegged 5 percentage points lower than the previous week, at 66 percent.

Cattle futures are called to lower this morning. The market is expected to open under pressure, weighed down by undeveloped cash trade and sliding beef prices. However, deferred contracts should see additional support from rising grain prices. Cash trade is anticipated to pick up later in the week, with prices called steady at best.

Lean hog futures are called to open lower this morning. Hog futures are anticipated to open pit trade on the soft side as traders take profits after yesterday’s strong rally in prices. Futures prices will be pressured by declines in the pork cutout value and weakening fundamentals. However, deferreds should continue to be supported by higher grain prices. Cash trade is expected to remain sluggish and prices are expected to be 50 cents to $1 lower.

Cotton futures are trading 40 to 80 points higher early morning. Cotton futures are trading higher despite pressure in the grain markets. Monday's crop progress report was somewhat bullish for cotton. USDA reported cotton condition ratings at 43 percent good/excellent, down 4 percentage points from last week, but higher than the previous year.