Corn futures are called 1 to 2 cents higher. Overnight trade was 1 1/2 to 2 cents higher. Outside markets were mixed overnight with Dow Jones futures solid gains helping corn futures recover from early weakness that came from losses in crude oil of nearly $2 on news that OPEC will not cut production. Corn export demand has been strong recently and weekly export inspections due out this morning after the open could be supportive. Also, smaller acreage estimates for corn will provide underlying support.



Soybean futures are called 7 to 8 cents higher with overnight markets closing that way. Overnight trade was pressured early by weakness in crude oil trade, but the rally in Dow Jones futures pushed prices higher. Strong export demand remains a supportive factor as China continues to buy from the U.S. at a time when demand normally shifts to South America. Old-crop ending stocks are estimated to be very tight, but the outlook for much larger soybean acreage in 2009 will limit strength in new-crop months.



Wheat futures are called 4 to 5 cents higher. Overnight CBOT trade was 3 3/4 to 5 1/4 cents higher and the KCBT was 3 3/4 cents higher in the most active month. Spillover strength is expected from corn and soybeans. The stock market looks to open higher this morning and the dollar was lower overnight as well. Crop conditions remain a bullish concern in the southern Plains as only "light" precipitation fell there over the weekend.



Cattle futures are called steady to higher. Early week ideas for the cash market are steady to higher as showlists are expected tighten and as packers remain light on inventory. Boxed beef prices were choppy last week, but beef prices should begin to improve as we move toward the spring grilling season.



Lean hog futures are called steady to higher. Cash bids fell sharply on Friday, but packers had a hard time obtaining hogs. The cash market is expected to recover some today as pork cutouts were up 85 cents on Friday. Packer margins remain poor, but ideas of improving demand seasonally and tightening hog supplies should provide support to futures trade.