Corn futures are called 3 to 4 cents lower. Overnight trade was 2 to 4 1/4 cents lower. The market is expected to trade lower with the December contract expected to test the contract low of $2.37 1/2 after dipping below that level overnight. Funds have been aggressively liquidating long positions following USDA's larger than expected production number and generally favorable weather conditions.



Soybean futures are called 4 to 5 cents lower. Overnight trade was 4 1/2 to 5 3/4 cents lower. Spillover weakness in corn and generally favorable Midwest weather will weigh on the market. USDA's production estimate was below expectations, but rain and moderate temperatures since the August 1 survey should benefit yields and traders are discounting USDA's number.



Wheat futures are called mixed. Overnight trade was 1/4 higher to 1 cent lower in most active CBOT contracts and the KCBT was 4 cents lower to 2 cents higher. We look for some choppy trade after the KCBT and CBOT fell to the lowest level since early May on Friday. USDA's wheat production number was above trade expectations. Technical weakness and spillover from corn and soybeans will be bearish factors. However, a sharp drop in USDA's world wheat stocks estimate should reinforce the supportive global wheat fundamentals.



Cattle futures are called steady to firm. Tight supplies of market ready cattle and firm beef prices should help feedlots get higher cash bids this week. Boxed beef prices were $1.25 to $1.87 higher on Friday. However, gains in the futures market may be limited by profit-taking. The large premium in futures and ideas that Friday's Cattle on Feed report will show a large increase in July placements will limit buying interest.



Lean hog futures are called steady to mixed as traders wait to see how the cash market develops. Packer margins are poor, but hog supplies are tight and producers appear current. However, moderate temperatures should result in more normal weight gains, and hog supplies should pick up by later this week.