Corn futures are called 2 to 3 cents higher. Overnight trade was 1 3/4 to 3 1/4 cents higher. The market is expected to continue higher following the solid gains posted on Tuesday. Fund buying is driving prices higher with new contract highs being posted yesterday. Despite harvest, basis levels remain mostly firm as farmer selling has been light and demand is strong.



Soybean futures are called 4 to 6 cents higher. Overnight trade was 4 to 6 1/4 cents higher. Futures pushed to the highest level in a year on Tuesday as speculative buying continues to support prices. Soybeans need to keep up with the gains in corn or risk losing additional acreage next spring. Harvest pressure has been light despite expectations for record large production. Farmer selling has been light and some harvest delays are expected this week.



Wheat futures are called higher. Overnight trade at the CBOT was 3 to 9 1/4 cents higher while the KCBT was 2 1/4 to 2 3/4 cents higher. Following the overnight gains, speculative buying is expected to support prices. Fundamental support will continue to come from tightening global wheat stocks. The reversal on Monday from early lows was a positive technical signal, suggesting that wheat prices will maintain an upward bias for the next few weeks.



Cattle futures are called steady to mixed in light volume. The futures market has already built in ideas of firm cash trade this week from the $88-$88.50 trade last week. Packers continue to maintain big slaughter schedules while showlists are smaller.



Lean hog futures are called steady to mixed. Cash bids were lower early in the week, but are expected to be mostly steady today. Pork cutouts were down 50 cents on Tuesday, but packer demand and slaughter schedules remain strong. Futures discount to cash will be a slightly supportive factor.