Corn futures are called 4 cents higher. Overnight trade at 6:30 am CT was 4 to 4 1/2 cents higher. Spillover support from soybeans and some further short-covering ahead of the USDA reports due out on Wednesday morning are expected to push prices higher. Export demand has been strong in recent weeks. However, gains may be limited by pre-report positioning and generally favorable weather forecasts for the crop. Good to excellent rated crops held at 68% good to excellent last week, unchanged from the previous week.



Soybean futures are called 18 to 20 cents higher. Overnight trade at 6:30 am CT was 18 1/2 to 19 1/2 cents higher. The market is expected to bounce back from the losses posted on Monday as traders gear up for the USDA reports due out on Wednesday morning. However, a couple of bearish factors could limit further gains. Weekly export inspections last week fell below the pace needed to reach USDA's export forecast. For new-crop, weather conditions are expected to be generally favorable. Crop conditions last week were 66% good to excellent, down 1% from the previous week.



Wheat futures are called 4 to 5 cents higher. Overnight trade at 6:30 am CT was 4 1/2 to 4 3/4 cents higher at the CBOT and 3 1/4 to 3 3/4 cents higher at the KCBT. The market is expected to be pulled higher by soybeans although trade could be choppy ahead of the USDA report due out Wednesday morning. Gains could be limited by ideas that USDA will show ample global wheat supplies. The direction of the dollar could also be influential. The Federal Reserve is meeting today and tomorrow and their decision on interest rates could influence the dollar.



Cattle futures are called steady to mixed. Boxed beef prices held near steady on Monday with active trade. Wholesale demand is expected to pick up soon as retailers begin to gear up for Labor Day. While cash markets have been on the defensive the past few weeks, cattle numbers are expected to begin tightening soon. Cash trade is not expected to develop until later in the week.



Lean hog futures are called higher this morning. The jump in pork cutouts of $2.08 should provide some support to futures. However, gains will be limited by continued weakness in the cash market. Hog marketings remain ample to fill packer needs and cash prices were down on average another $1.50 yesterday. With most packer needs covered for the week, steady to lower cash bids are expected today.