Corn futures are called 2 to 3 cents higher. Overnight trade was 1/2 to 2 3/4 cents higher. While corn has been the leader of the crop complex recently, soybeans provided support on Friday and could again this morning. Funds were buyers again late last week, adding to an already very long position. The market is expected to remain in a trading range, but could move to the upper end of the range. Ideas of a big jump in acreage this spring will be a limiting factor.



Soybean futures are called 6 to 7 cents higher. Overnight trade was 5 1/4 to 8 1/2 cents higher. The push to new contract highs last week and strength overnight point to a higher open. Old-crop fundamentals remain bearish, but support is coming from ideas of a big acreage shift away from soybeans this spring. Also, soybean oil is getting some spillover support from energy markets.



Wheat futures are called 2 to 3 cents higher. Overnight CBOT trade was 1 1/4 to 3 1/2 cents higher and the KCBT was 1 to 2 1/2 cents higher. Spillover strength is expected to come from corn and soybeans. Cold weather in the Plains and Midwest has raised the threat of winterkill although snowcover in the hard red winter wheat belt is generally adequate to limit the threat of damage. Light technical support should come from futures being able to bounce off of near-term chart support last week.



Cattle futures are called higher. The strong closed on Friday has technical charts looking more positive. Cash prices traded up $2 in the south late on Friday at mostly $89. Continued weather stress on cattle and ideas that boxed beef prices are bottoming will provide support. The Inventory report released after the close on Friday was bullish as drought in 2006 put cattle herd expansion on hold for at least a year.



Lean hog futures are called steady to higher. Cash markets have been firming and packers are short bought to start this week. With cutouts gaining 87 cents on Friday, cash bids should be firm again this morning. However, gains will be limited by technical overbought conditions. Also, packer margins turned negative last week so further strength in pork cutouts will be needed this week to keep the cash market firm.