Corn futures are called 3 to 4 cents lower. Overnight trade was 2 to 4 cents lower. The market posted a key reversal lower on Monday. Technical action was negative as profit-taking corrected overbought conditions. A round of liquidation by the funds poses the biggest near-term risk to prices. However, the market will remain very attentive to weather forecasts and possible planting problems due to wet weather this spring.

Soybean futures are called 3 to 4 cents higher. Overnight trade was 3 to 3 3/4 cents lower. The market setback from new contract highs yesterday, but was able to hold onto small gains. However, expected weakness in corn will be a negative factor for soybeans. Harvest activity is expanding in Brazil and large crops are still expected in Brazil and Argentina.

Wheat futures are called 3 to 5 cents lower. Overnight CBOT trade was 3 1/2 to 5 cents lower and the KCBT was 2 to 6 1/4 cents lower. The reversal trade on Monday suggests that a near-term top may be in place. Technical selling and weakness in corn are expected to weigh on futures. Improving export demand and concern about soft red winter wheat drowning out in the southern Corn Belt should help limit losses.

Cattle futures are called higher on the open. Fund buying pushed prices to new contract highs on Monday. We look for some more strength this morning. Cash markets are expected to trade firm this week with boxed beef prices are beginning to move higher. However, given the recent runup the market remains at risk to some profit-taking in the near-term.

Lean hog futures are called steady to higher. The cash market is expected to be firm this morning as packer margins are favorable and pork cutout values were up 50 cents on Monday. Spillover strength from the beef market will also be supportive as pork should become more attractive to retailers.