Corn futures are called 1 to 2 cents lower amid profit-taking. Following early week gains, corn futures faced profit-taking overnight, as well as spillover from losses in the soybean market. A firmer tone in the U.S. dollar index added to the negative attitude overnight. July corn spent the overnight session pivoting around the late-April high of $3.95 1/4. A close above this level would be a positive technical sign. Key this morning is if traders view overnight weakness as a buying opportunity as there's little fresh news.              

Soybean futures are called 7 to 10 cents lower amid profit-taking. Soybean futures saw two-sided trade overnight, but softened to end the session near the lows and with losses amid profit-taking. There's little fresh news for the market to digest this morning, with spread unwinding with the corn market as the primary price driver overnight. The July contract must hold above Monday's low of $10.55 to avoid triggering sell stops.

Wheat is called 1 to 4 cents lower in lackluster trade. Wheat futures saw two-sided trade overnight, with early buying being met by profit-taking on spillover from corn and soybean futures. A firmer tone in the dollar index added to the negative tone. There's little fresh news for the market to digest this morning, which could result in a lackluster day of trade. While large speculative traders have trimmed their short exposure to the market recently, they still hold an extremely large net short position, which opens the door to more near-term upside potential.              

Live cattle futures are called higher on followthrough buying. Cattle futures are expected to benefit from followthrough from yesterday's gains and strength in the beef market. Packers are seeing profit margins improve due to rising beef prices. Yesterday, Choice values rose $2.93 and Select was up $3.06 on movement of 113 loads. Additionally, June live cattle hold around a $10 discount to the midpoint of last week's $132 to $134 cash trading range. A weaker tone in the corn market is expected to be supportive for feeder futures this morning.              

Lean hog futures are called mixed amid spreading. Nearby lean hog futures are at risk of profit-taking given their wide premium to the cash index. This could result in bull spread unwinding. Pork cutout values softened 28 cents yesterday on improved movement of 394.92 loads. The cash hog market is expected to be mostly steady this morning as packers are having no difficulty securing supplies. Week-to-date kill is running 12,000 head above week-ago. For the week ended May 14, average hog weights in the Iowa/southern Minnesota market rose by 0.1 lbs. to 283.3 lbs and are 2.5 lbs. heavier than year-ago.

Cotton futures advanced strongly Tuesday, which market observers credited to active short-covering. The fact that major chart support had recently held apparently persuaded bears to bail out of those positions. It  would have been easy to expect a quick overnight reversal, especially when the situation was viewed in light of the late Tuesday equity market decline and overnight follow-through, as well as the Tuesday night rally  posted by the U.S. dollar. The fact that cotton prices posted early-Wednesday gains was impressive, although futures have clearly backed away from overnight highs. July cotton gained 0.13 cents to 62.33 cents/pound in early Wednesday action, while the December contract rose 0.13 to 61.70.