Corn futures are called 4 to 5 cents higher. Overnight trade was 4 1/2 to 6 1/4 cents higher. The larger than expected cut in the Fed Funds rate target rate yesterday has given the U.S. and overseas stock markets a boost. Crude oil and gold markets were up strongly overnight while the dollar index was lower. Outside markets remain the main market mover, but recent talk about reduced acreage in 2009 has helped corn futures gain on soybeans.



Soybean futures are called 14 to 15 cents higher. Overnight trade was 13 3/4 to 15 1/4 cents higher. Stock market strength and the rally in crude oil futures overnight will be supportive. In addition, Chinese soybeans and Malaysian palm oil futures were firm last night. The dollar has moved lower and that should be beneficial for export demand.



Wheat futures are called 7 to 10 cents higher. Overnight CBOT trade was 6 1/2 to 10 1/2 cents higher and the KCBT was 7 cents higher. The lower trending dollar and strength in crude oil and gold overnight will be supportive for wheat trade. The stock market was supported by the Federal Reserve cutting the Fed funds target rate more than expected. However, gains are expected to be limited by bearish global supply/demand fundamentals and end of the year commercial selling.



Cattle futures are called higher on the open. The larger than expected cut in the Fed funds target rate by the Federal Reserve yesterday afternoon has given the U.S. and overseas stock markets a boost. Beef prices continued to appreciate on Tuesday, with choice cuts up 54 cents. Cash trade is expected to be firm compared to the $85 trade last week.



Lean hog futures are expected to open lower. While outside markets should be supportive with the firm stock market, the sharp $2.30 drop in pork cutouts are expected to weigh on the cash and futures markets. Ham prices collapsed on Tuesday as wholesale seasonal demand has dried up.