Corn futures are expected to open mixed Wednesday morning with the front months slightly lower and the new-crop December firm to higher. In the overnight trading session, March corn was down a half cent at $3.87 1/2 while the December 2007 was 3/4 of a cent higher at $3.72 1/4. Following the strong rally during the past week, the market is vulnerable to some long liquidation on year-end position squaring.

Soybean futures are called 1 to 2 cents higher. In the overnight session, January soybeans were a penny higher at $6.72 1/2 while the November was 2 1/2 cents higher. Malaysian palm oil futures were slightly lower following a steep jump on Tuesday. Flooding in Indonesia was the major factor pushing soyoil and soybeans higher Tuesday. Growing conditions in South America remain favorable so soybeans may run into profit taking after the opening.

Wheat futures are expected to open 1 to 2 cents lower Wednesday morning. Chicago March was down 2 cents and Kansas City March was a penny lower in the overnight trade. Wheat futures closed in the lower portion of the daily trading range Tuesday to leave the charts looking a bit negative in the near term. Weather forecasts call for moisture to move into the Plains late this week and into the weekend.

Cattle futures are called steady to firm after finishing on a positive note Tuesday. Boxed beef cutout values were $1.05 higher Tuesday afternoon to lend some fundamental support. With another winter storm in the forecast for late this week, packers should seek cattle with more urgency. However, front-end feedlot supplies remain ample with a number of cattle carried over from last week.

Lean hog futures are called steady to weak after selling off sharply on Tuesday. Long liquidation ahead of the Hogs and Pigs report this afternoon may keep the market tone defensive. However, the cash market looks firm after climbing 50 cents to dollar Tuesday but the February futures contract is still couple dollars above the cash market. Packers plan a heavy Saturday slaughter and are expected to continue bidding aggressively.