Corn futures are called 1 to 2 cents lower. Overnight trade was 3/4 to 1 3/4 cents lower. Light consolidation trade is expected as futures are pushing up against technical resistance. Despite large old-crop stocks, fundamentals are improving. Export demand remains strong and feed demand should be strong with record numbers of cattle on feed as of February 1. In addition, corn acreage is expected to decline this year.



Soybean futures are called 3 to 4 cents lower. Overnight trade was 3 1/4 to 4 1/2 cents lower. Some light profit-taking losses are expected on the open. Fundamentals are generally bearish with a record South American crop expected and ending U.S. stocks projected to be record large. In addition, U.S. soybean acreage is expected to show a sizeable jump this spring.



Wheat futures are called steady to 1 cent lower. Overnight trade was steady to 3/4 of a cent lower. Crop conditions in the Plains remains poor due to dry weather, but some weather forecasters are hinting at better chances of rain in March. The U.S. has been shut out of some recent export tenders, most recently when Egypt bought wheat from France.



Cattle futures are called lower on the open. Friday's Cattle on Feed report showed January placements above trade expectations 16% above year-ago and on feed numbers as of February 1st being record large at up 7% from last year. There is concern that expanding slaughter will weigh on beef prices this week, thus weighing on the cash market.



Lean hog futures are called steady to mixed. Packers were able to push cash prices a little lower late last week and will probably try again at the beginning of this week. However, packer margins have improved with cutouts at their highest level in a month.