Corn futures are called 6 to 7 cents higher. Overnight trade was 6 1/2 to 7 cents higher. The rally in soybeans and crude oil are expected to support corn futures. Gains will be limited by the sluggish pace of exports and strong jump in the value of the U.S. dollar yesterday and again overnight.



Soybean futures are called 20 to 21 cents higher. Overnight trade was 17 1/2 to 21 3/4 cents higher. Strong export demand and the warm and dry weather in Argentina are supportive. Export sales and shipments remain strong although strength in the dollar index overnight is a bearish factor. Updated forecasts last night showed reduced rainfall in Argentina next week.



Wheat futures are called 3 to 5 cents higher. Overnight CBOT trade was 3 1/2 to 5 cents higher and the KCBT was 1/4 to 2 3/4 cents higher. Spillover strength in corn and soybeans are expected to pull wheat futures higher, although gains will be limited by the sharp gains in the dollar index overnight. Technical buying yesterday pushed the nearby CBOT contract to the highest level in 3 months.



Cattle futures are called steady to mixed. Strength in the cash market last week and the jump in beef prices Monday will be supportive. Choice beef prices were $1.78 higher yesterday. However, futures could be choppy as traders wait for the cash market to develop.



Lean hog futures are called steady to mixed. Cash trade is expected to be steady to firm and pork cutouts were up 80 cents on Monday. However, future's premium to cash and tight processing margins will limit gains. Strength in the dollar index is bearish for deferreds as it is negative for pork exports.