Corn futures are expected to open 1 1/2 to 2 cents higher Tuesday after climbing 2 1/4 to 3 3/4 cents in the overnight trading session. Sharply higher soybean futures are expected to lead the way attracting another round of speculative buying into the grain pits. Corn market fundamentals won't offer much help but the commodity funds appear willing to continue their buying spree. The recent jump in soybean prices has traders rethinking expectations for a big increase in corn acreage this spring.



Soybean futures are called to 7 to 10 cents higher Tuesday after jumping 12 1/2 to 17 cents in the overnight electronic trading session. Sharply higher soybean futures in China are expected to renew the speculative support. Export inspections remain strong and the February crush was supportive. Even though dry areas of southern Brazil received good rains over the weekend, severe crop damage has already occurred. The soybean market is leading a wave of bullish enthusiasm for commodities in the financial centers.



Wheat futures are called 2 to 3 cents higher in sympathy with strong corn and soybeans. In the overnight market, wheat futures were 2 1/2 to 3 cents higher. Renewed speculative buying will lend support but forecasts for wet snow in the southern Plains may limit gains, particularly in Kansas City. Export inspections were weak on Monday but buyers seem to be looking past the negative fundamentals at least until prospect of harvest draws closer.



Cattle futures are called 10 to 20 points higher on Monday. Smaller showlists and snow in the southern Plains will lend support. Uncertainty over the pending National Meat Association appeal to reopen the Canadian border will keep the market nervous and limit gains. Futures have posted a decent recovery since the Friday's lows and the market should find technical support Tuesday. We could see solid gains if traders shrug off the legal wrangling over the Canadian border issue.



Lean hog futures are called 20 to 40 points lower Tuesday on follow through selling after a very negative trading session Monday. April futures plunged through chart support to drop to the lowest level since December. Cash hogs were sharply lower but packers were able to buy adequate supplies. The pork cutout value was down slightly over a dollar Monday night with loins falling $3.75 to give back much of their recent strength. In short, there isn't much to lend support other than the fact that futures will soon be oversold setting the stage for a bounce.