Corn futures are called 3 to 4 cents lower. Overnight losses ranged from 2 to 5 cents. We look for some further fund selling following yesterday's sharp losses. Weakness in crude oil and a rally in the dollar was also a bearish factor for corn. Fundamentals remain supportive, but technical weakness could keep pressure prices.



Soybean futures are called 4 to 5 cents lower. Overnight trade was 3 1/4 to 6 cents lower. The rally into the end of 2006 left the market vulnerable to some profit-taking. Weakness in the grain markets and generally favorable crop conditions in South America are expected to keep prices on the defensive.



Wheat futures are called mixed. Overnight CBOT trade was 1 3/4 cents lower to 2 3/4 cents higher and the KCBT was 1/4 of a cent higher to 2 1/4 cents lower. Further fund selling and technical weakness could pressure prices again today. However, some consolidation is expected from recent losses. Fundamentals remain bearish given the sluggish export demand and recent precipitation in the Plains.



Cattle futures are called steady to higher. Expectations for a firm cash market this week and the continued affects of the big winter storm in the western Plains will provide support. Boxed beef prices were $0.94 to $1.44 higher on Wednesday. However, gains may be limited and trade could turn choppy on some consolidation of the recent runup.



Lean hog futures are called steady to mixed. Cash markets are called steady to lower again today, but ideas that the recent drop in futures is overdone could help futures stabilize today. The nearby contract is now at a discount to cash, which should limit further speculative selling.