Corn futures are called 7 to 9 cents higher. Overnight trade was 6 1/2 to 10 1/4 cents higher. Short-covering from recent losses supported prices on Wednesday and is expected to again this morning. Traders will be evening positions ahead of the USDA reports due out Friday morning. The market is looking for ending stocks to be trimmed. Futures remain vulnerable to further weakness due to fund selling in the near-term. Weekly export sales due out this morning are only expected to be 20-28 million bushels due to slow activity over the holidays.

Soybean futures are called 6 to 8 cents higher. Overnight trade was 5 1/2 to 8 3/4 cents higher. The market ended a choppy session little changed on Wednesday. Spillover support from corn and positioning ahead of the USDA reports on Friday should support futures this morning even though ending stocks are expected to be bumped about 30 million bushels higher. Weekly export sales this morning are expected to be low at 13-20 million bushels due to the holidays.

Wheat futures are called 6 to 7 cents higher. Overnight CBOT trade was 4 to 8 cents higher and the KCBT was 5 1/4 to 7 cents higher. The market is expected to rebound from oversold levels this morning with spillover support coming from corn. The break in prices should begin to attract renewed export demand for U.S. wheat. Iraq has been in the market for U.S. wheat. However, weekly export sales are expected to remain sluggish at 7-13 million bushels due to slow demand over the holidays.

Cattle futures are called steady to higher this morning. Rising beef prices and short-bought packers are expected to help cash trade firm this week. Packer bids were raised on Wednesday despite slower slaughter schedules. Support is also expected to come from weather forecasts for wintery weather and a period of colder temperatures in the Plains.

Lean hog futures are called steady to higher. Follow-through buying is expected following yesterday bounce from oversold levels. Cash markets could stabilize today as packers increase Saturday slaughter plans. Packer margins will benefit from yesterday's 88 cent jump in pork cutouts and the recent decline in cash prices.