Corn futures are called 5 to 6 cents lower. Overnight trade was 4 1/4 to 7 1/2 cents lower. Outside markets are expected to pressure corn futures. The dollar index was higher overnight while crude oil, gold and the Dow Jones Industrial Average futures were all lower. There is some fundamentally supportive news that could help limit losses. Export demand has perked up the past few weeks and the corn crop prospects in Argentina have been damaged significantly.

Soybean futures are called 9 to 10 cents lower. Overnight trade was 9 to 11 3/4 cents lower. Recent rainfall in Argentina has helped boost soybean crop prospects. While dry areas remain, more rain is forecast for this week. Outside markets will also be bearish. The Dow Jones Industrial Average futures were down sharply overnight and crude oil and gold were also on the defensive. Export shipments and sales reports this week are expected to be down strongly from previous weeks as Chinese New Year celebrations last week limited demand.

Wheat futures are called 3 to 5 cents lower. Overnight CBOT trade was 4 1/4 to 5 cents lower and the KCBT was 2 1/2 cents lower. Spillover selling from corn and soybeans along with outside markets are expected to weigh on wheat. The dollar moved higher overnight, making U.S. wheat less competitive on the world market. There were some signs last week of increased export demand. Weekly export inspections will be reported this morning and could provide some light support.

Cattle futures are called higher on the open, but gains may be limited and futures could turn lower from expected weakness in the stock market. The semi-annual Cattle report on Friday pegged the U.S. inventory of all cattle and calves at 94.491 million head, down 1.544 million head or -2% from a year ago. This is about 800,000 head lower than the average of trade estimates. The larger than expected contraction in the cattle herd is supportive to the cattle market longer-term, but outside markets will be a negative factor this morning.

Lean hog futures are called steady to higher. Cash markets moved higher last week and are expected to be firm this morning. Hog numbers are tightening and packers are raising bids despite poor margins. But strength in the cash market is expected to be limited unless pork prices can turn higher. Expected weakness in the stock market and outside commodities are expected to limit gains.