Corn futures are called 1 to 2 cents higher. Overnight trade was 1 to 1 3/4 cents higher. Speculative buying is expected to help prices rally this morning. With funds still short, some short-covering is likely ahead year-end. Bearish long-term fundamentals and ideas of increased cash movement in January will limit gains.



Soybean futures are called 6 to 7 cent higher. Overnight trade was 6 1/2 to 7 cents higher. Speculative buying is expected to support futures this morning. Fundamental support will come from some areas in South America becoming rather dry and talk of additional export business with China.



Wheat futures are called 1 to 3 cents higher. Overnight trade was 1 1/4 to 2 3/4 cents higher. Technically the markets improved with last week's rally. The central Plains had some cold temperatures the weekend with little or no snowcover, so winterkill will be a concern. Spillover support is also expected from soybeans and corn.



Cattle futures are called steady to higher. Follow-through buying is expected to support the market on the open. However, with contract highs set last week and cash markets likely near an interim high, profit-taking could weigh on futures this week. Friday's Cattle on Feed report is expected to be bearish.



Lean hog futures are called steady to mixed. Packer margins remain favorable, but they have been able to lower bids and still bring enough hogs to fill slaughter needs. Strong export demand and ideas of post-holiday demand will provide fundamental support that should help limit losses.