Corn futures are called 2 to 3 cents lower. Overnight trade was 2 to 3 1/2 cents lower. The sharp losses in the stock market yesterday and recently bearish supply/demand revisions are expected to weigh on the market. USDA will release weekly export inspections this morning and it is expected to reaffirm the sluggish pace of exports. Losses should be limited by firm crude oil and weakness in the dollar overnight.

Soybean futures are called 3 to 4 cents lower. Overnight trade was 2 1/2 to 4 cents lower. Light follow-through selling is expected this morning after the sharp drop in the stock market and rise in the dollar yesterday. Weather conditions have improved in Brazil, but remain a problem in much of Argentina. However, some strength in crude oil trade and weakness in the dollar overnight will limit losses. Also, the weekly export inspections report should be strong given the recent demand from China.

Wheat futures are called 5 to 6 cents higher. Overnight CBOT trade was 2 1/4 to 6 3/4 cents higher and the KCBT was 4 3/4 to 5 1/2 cents higher. Light buying interest is expected following the strong losses yesterday. The value of the dollar eased overnight, but has risen quite sharply since mid-December. A rebound in outside markets and ideas that the weekly export inspections report will remain on pace to reach USDA's export projections will be supportive.

Cattle futures are called steady to mixed. Beef prices continue to rise and packer margins have improved, but so far there is little indication that they will raise bids this week. Sharp losses in the stock market yesterday and strength in the dollar is bearish even though the dollar moved a little higher overnight and the stock market is expected to open a little higher.



Lean hog futures are called steady to mixed. Packer margins are poor, which is keeping the cash market in check. However, the 33 cent jump in pork cutouts yesterday will provide light support. Concern about the economy and possible decrease in pork demand will remain a bearish factor although outside financial markets are expected to improve some this morning.