Corn futures are called 1 to 2 cents higher. Overnight trade at 6:30 am CT was 1 3/4 to 2 cents higher. The market is expected to build on yesterday's rally. Crop condition ratings remain strong at 70% good to excellent, although that is down 1% from the previous week. Crop progress remains below normal and forecasts call for cool weather to return to the Corn Belt. The crop is only 55% silking, down 21% from the five-year average. Also supportive is the strong pace of export shipments last week of 52.2 million bushels, which was above expectations and the pace needed to reach USDA's 1.8 billion bushel forecast.



Soybean futures are called 15 to 20 cents higher. Overnight trade at 6:30 am CT was 16 1/4 to 18 cents higher. Commercial buying is expected to push futures higher this morning. The lagging maturity of the crop and cooler than normal forecasts are supportive factors. The crop is setting pods in 20% of the crop compared to the five-year average of 36%. Crop condition ratings held at 67% good to excellent last week. Weakness in the dollar overnight continued the downtrend, which is a positive factor for commodity markets.



Wheat futures are called 2 to 3 cents higher. Overnight trade at 6:30 am CT was 3 1/4 to 3 1/2 cents higher at the CBOT and 2 1/4 cents higher at the KCBT. Spillover support from corn and soybeans are expected to help push wheat futures higher. Weakness in the dollar is a supportive factor. However, gains will be limited by sluggish export demand and strong spring wheat condition ratings that improved to 74% good to excellent last week. Seasonal buying should be a supportive factor as winter wheat harvest pressure fades.



Cattle futures are called mixed in choppy trade as cash prospects are evaluated. Cash trade was disappointing last week at mostly $83. However, showlists are reportedly smaller this week and beef prices moved a little higher on Monday. But buying interest in futures will be limited by concern about the typical sluggish pace of beef movement in late July and the slow slaughter pace by packers that could limit cash market bids.



Lean hog futures are called steady to mixed. Fundamentals are mostly bearish with pork cutouts down 85 cents on Monday and generally lower cash bids. But futures were able to make a short-covering bounce yesterday that could lead to some choppy trade today. Packers have been maintaining aggressive slaughter schedules, but that could help keep pork prices on the defensive.