Corn futures are called 1 to 2 cents higher. Overnight trade ended 1 1/2 to 2 cents higher. We look for prices to bounce from recent losses. However, gains are expected to be limited by forecasts calling for much needed rain in Argentina and caution ahead of the Supply/Demand report due out on Thursday.



Soybean futures are called 3 to 4 cents higher. Overnight trade was 2 1/2 to 5 cents higher. Technical buying is expected to help the market move higher following recent sharp losses. However, weak chart patterns and forecasts for rain in Argentina will limit buying interest.



Wheat futures are called 1 to 2 cents higher. Overnight trade closed 1 1/4 to 2 cents higher. Futures have been hit hard by technical selling, but we look for some light buying interest this morning. Fundamentally, poor crop conditions remain in the Plains. Exports are holding up pretty well despite stiff competition from the EU and Australia.



Cattle futures are called steady to higher. The futures market continues to find underlying strength as funds continue to add to their net long position. Cash trade is not expected until later in the week. Packer bids are expected to be held back by negative margins and struggling boxed beef values.



Lean hog futures are called steady to higher. Spillover buying from yesterday and expectations for firm cash markets are expected to be supportive on the open. Packer margins are still positive, but have narrowed recently. Pork cutouts prices have been declining with a 78 cent drop on Monday.