Corn futures are called 7 to 9 cents lower. Overnight trade was 5 1/4 to 9 3/4 cents lower. It appears the market will open 2007 on a weak note following recent gains. Fund activity and index rebalancing will be issues for the corn market over the next couple of weeks. This is potentially a negative for prices as index rebalancing forces some net selling of futures.

Soybean futures are called 7 to 8 cents lower. Overnight trade was 7 to 8 1/4 cents lower in most active contracts. Expected weakness in corn and wheat along with generally bearish fundamentals will weigh on the market. Supplies in the U.S. remain large and crop conditions remain mostly favorable in South America.

Wheat futures are called strongly lower this morning. Overnight CBOT trade was 12 1/2 to 15 cents lower and the KCBT was 9 1/4 to 11 cents lower. Losses in overnight trade the past two days will start the market off on a weak note this year. Sluggish export demand and good precipitation in much of the hard red winter wheat belt will be bearish fundamental factors.

Cattle futures are called steady to mixed as traders wait for cash trade prospects to become more clear. Heavy snowfall and precipitation in the Plains has slowed rate of gains and will disrupt some marketings this week. Technical strength will be countered by concern that cattle will become backlogged following recent slow movement.

Lean hog futures are called steady to lower. Weakness in the cash market and pork cutout values will weigh on futures. Cash trade was down $2-$3 yesterday and is expected to be lower again today. Packer margins remain poor with pork cutouts falling 65 cents yesterday.