Corn futures are called 2 to 3 cents higher. Overnight trade was 1/2 to 3 3/4 cents higher. Rain in the eastern Corn Belt will prevent fieldwork and will likely seal the deal that some acreage intended for corn will be switched to soybeans. The Supply/Demand report showed that USDA lowered their yield projections due to the late planting and ending stocks in the next marketing tighten significantly. Weakness in the dollar and some strength in crude oil overnight will also provide support.

Soybean futures are called 7 to 10 cents higher. Overnight the July contract was 12 3/4 cents higher while November was 5 1/4 cents higher. The soybean market continues to rally. USDA is projecting old-crop stocks to be the tightest since 1977 and new-crop ending stock estimates are also declining. Rainfall in the eastern Midwest will further slow planting progress, which will hurt yield potential. However, it will also push some acreage intended for corn to soybeans. Weakness in the dollar and strength in crude oil overnight will be supportive factors.

Wheat futures are called 5 to 6 cents higher. Overnight CBOT trade was 1 1/2 to 5 1/2 cents higher and the KCBT was 6 1/2 to 7 1/4 cents higher. A rebound is expected from the strong losses yesterday. Spillover support from soybeans and weakness in the dollar will be bullish factors. However, bearish fundamentals are expected to limit gains. USDA raised its ending stocks projection for U.S. and world wheat. U.S. wheat is having a hard time staying competitive on the global export market despite the decline in the dollar to the lowest level of the year recently.

Cattle futures are called steady to mixed. Choppy futures trade is expected as traders wait for cash market news. Steady to $1 trade is expected to develop, but packers will have to raise their bids for that to happen. Outside markets should provide some light support as the dollar index was lower overnight.

Lean hog futures are called steady to mixed. Futures were lower again on Wednesday, but technically oversold conditions and weakness in the dollar could lead to some short-covering. But fundamentals remain bearish with pork cutouts falling another 93 cents on Wednesday. Concern about herds being liquidated will remain a bearish underlying factor for front end contracts.