Corn futures are called 5 to 6 cents lower. Overnight trade was 5 3/4 to 6 1/2 cents lower. While crude oil traded a little higher overnight, corn and other crop markets were lower again. Follow-through selling pressured prices as some traders are beginning to gear up for the USDA reports due out on Monday. Ending stocks are expected to be bumped higher as exports are likely to be trimmed.



Soybean futures are called 6 to 7 cents lower. Overnight trade was 6 1/4 to 9 cents lower. Some follow-through selling is expected this morning following losses in Chinese soybeans and Malaysian palm oil futures overnight. A small rebound in crude oil should help to limit losses. Weather forecasts for Argentina and Brazil will continue to watched closely. Forecasts currently call for some relief this weekend and early next week, but subsoil moisture levels in Argentina are expected to remain inadequate.



Wheat futures are called 6 to 10 cents lower. Overnight CBOT trade was 3 to 10 cents lower and the KCBT was 6 1/4 to 7 1/4 cents lower. The dollar index was higher overnight and export demand has been sluggish recently. Positioning ahead of the USDA reports on Monday is expected today and Friday. USDA is expected to decrease ending stocks and show a decline in 2009 winter wheat acreage, but those expectations have already largely been priced into the market.



Cattle futures are called steady to lower. Beef prices were lower on Wednesday, with choice cutouts down $1.31. This coupled with talk that packers will slow slaughter will continue to pressure prices. Concern that the economic recession will hurt beef demand remains an underlying bearish factor.



Lean hog futures are called steady to lower. Cash markets continue to move higher, but the $1.13 drop in pork cutouts is expected to pressure futures this morning. The futures market remains technically strong, but profit-taking from the highs yesterday and concern about pork demand due to the struggling economy will weigh on futures.