Corn futures are called 4 to 5 cents higher. Overnight trade was 3 to 5 1/4 cents higher. After light consolidation the past couple of sessions, we look for a higher open. Strong export and ethanol projections continue to drive the need for a sharp increase in acreage next spring. However, the size of the long position held by the funds leaves the market vulnerable to a round of long liquidation.



Soybean futures are called 7 to 8 cents higher. Overnight trade was 6 1/2 to 8 cents higher. With corn called higher on the open, soybeans are expected to follow suit and open higher as well. Rally attempts failed to attract any follow through buying yesterday, but it appears that traders will take another crack at higher prices this morning.



Wheat futures are called 2 to 3 cents higher. Overnight CBOT trade was 2 1/2 to 4 3/4 cents higher and the KCBT was steady to 2 3/4 cents higher. The recent setback in wheat and rising corn prices should attract buying interest this morning. Expectations for improving demand and seasonally slow cash wheat movement should provide the market some support in the near-term.



Cattle futures are called steady to mixed. The premium of the February contract to cash and last week's lower cash trade will limit buying interest. In addition, beef prices continue to decline. However, showlists are smaller this week the impact of the weather stress in the Plains should continue to bring down slaughter weights and provide support for the cash market soon.



Lean hog futures are called steady to mixed. Cash markets are called mostly steady on the open. After opening firm on Monday, the cash market slipped as many packers have needs covered through mid-week. The February contract's premium to the lean hog index is expected to limit buying interest on the front end unless cash markets can be firm.