Corn futures are called 1 to 2 cents lower. Overnight trade was steady to +2 3/4 cents lower. After hitting new contract highs yesterday, gains were trimmed. We look for some consolidation trade today. However, commercial and speculative buying interest on weakness will likely limit losses. Recent weakness in the U.S. dollar is expected to benefit export demand.



Soybean futures are called 1 to 2 cents lower. Overnight trade was 2 cents lower to 3/4 of a cent higher. Futures continue to trend higher, but gains the bearish fundamental outlook could limit buying interest. Export demand has been a supportive market factor and recent weakness in the U.S. dollar should help spur additional export demand.



Wheat futures are called 1 to 2 cents lower. Overnight CBOT trade was 2 3/4 cents lower to 2 1/2 cents higher and the KCBT was 1 1/4 to 1 3/4 cents lower. The weak close on Monday and spillover weakness are expected to weigh on the market. However, declining crop condition ratings will provide some fundamental support. Winter wheat condition rating fell to 53% good to excellent last week compared to 57% the previous week and 52% at this time last year.



Cattle futures are called steady to lower. Spillover selling and weakness in beef prices will be negative factors. Boxed beef prices were $0.64 to $1.12 lower on Monday. There is also concern that fed cattle supplies will be increasing during the next few weeks.



Lean hog futures are called steady to lower. Cash trade is called steady today, but declining packer margins are expected to push bids lower later this week. Pork cutouts were up 52 cents on Monday, but cash markets have risen faster than cutout values.