Corn futures are called steady to 1 cent lower. Overnight trade was 1/4 to 3/4 of a cent lower. The market is expected to grind lower again this morning. Rainfall in moving through the Corn Belt and forecasts show more precipitation into next week. This will help replenish depleted soil moisture levels. USDA is expected to trim old-crop ending stocks on Friday, but carryover stocks will still be large.

Soybean futures are called 1 to 2 cents lower. Overnight trade was 1/4 to 2 cents lower. Bearish fundamentals are expected to keep soybeans on the defensive. Strength in the dollar will hurt competitiveness with Brazil on the world export market. Expanding bird flu is expected to hurt soybean meal. In addition, rainfall in the Midwest will improve new-crop prospects.

Wheat futures are called 1 to 2 cents lower. Overnight trade was 1 to 1 1/2 cents lower. Rain amounts in the central and southern Plains remain light, but forecasts do call for more chances of precipitation. The market was unable to rally on bullish crop condition ratings yesterday and the market appears vulnerable to some technical selling in the near-term.

Cattle futures are called steady to lower. Spillover selling and follow-through long liquidation is expected to weigh on the market. Cash trade is not expected until later in the week, although expectations are for steady to $1 lower. We would expect at some point that technically oversold conditions will lead to a short-covering bounce.

Lean hog futures are called steady to lower. The cash market turned weaker yesterday and is expected to be steady to $1 lower again today. Packers are trying to protect margins which were boosted by yesterday's 40 cent jump in cutouts. Technical weakness is expected to contribute to the lower trade although futures are becoming oversold.