Corn futures are called 3 to 4 cents lower. Overnight trade was 3 1/4 to 3 3/4 cents lower. Outside markets continue to be a bearish factor. The Dow Jones Industrial Average was down sharply yesterday, although it did bounce slightly overnight. But the threat of it breaking below key support levels will remain a bearish factor for corn. Export demand has been a supportive factor recently, although weekly export inspections reported yesterday fell below the pace needed to reach USDA's export forecast.



Soybean futures are called 6 to 7 cents lower. Overnight trade was 5 1/2 to 7 1/4 cents lower. Soybean futures bounced yesterday, but closed near the lows of the day. The bearish momentum of soybeans and outside markets are expected to weigh on the market. The stock market fell sharply yesterday and although it was slightly higher overnight, is threatening to break below key support levels. The weather concerns for Argentina's soybean crop have largely been alleviated by recent rainfall, although dry spots remains and the crop has been trimmed significantly by drought early in the growing season.



Wheat futures are called 3 to 4 cents lower. Overnight CBOT trade was 3 1/4 to 4 cents lower and the KCBT was 3/4 to 3 1/4 cents lower. Spillover pressure from corn and soybeans and concern about sluggish export demand will pressure prices. Outside markets remain a bearish influence, although weakness in the dollar overnight is slightly supportive. Egypt's purchase of Russian wheat over the weekend signifies that U.S. wheat is not competitive on the world export market.



Cattle futures are called steady to mixed. Futures are oversold, but the lower trend in the stock market and concern about beef demand in the economic recession will remain a bearish factor. In addition, cash cattle trade is expected to be lower this week, with some areas expected to slip below $80. Losses could be limited by short-covering, the small rebound in the stock market overnight and small gains in boxed beef prices on Monday.



Lean hog futures are called steady to lower. Weakness in the cash market is expected to continue today following the 81 cent drop in pork cutouts on Monday. Outside markets will be a bearish factor as traders worry about pork demand given the current economic climate. The stock market is threatening to break below support levels, although it did rebound slightly in overnight trade.