Corn futures are called 4 to 5 cents lower. Overnight trade was 4 1/2 to 6 1/4 cents lower. Long liquidation is expected to weigh on the market this morning. Fundamentals remain bullish and should underpin longer-term, but the market remains vulnerable to a technical correction from the recent runup to 10 year highs.



Soybean futures are called 6 to 7 cents lower. Overnight trade was 6 to 7 1/2 cents lower. With the weakness in corn and bearish supply/demand fundamentals, we look for some weakness this morning. Bullish momentum has slowed and the weekly charts last week show a reversal, which will encourage some technical selling.



Wheat futures are called 3 to 4 cents lower. Overnight CBOT trade was 2 3/4 to 4 cents lower and the KCBT was 2 1/4 to 4 1/2 cents lower. Spillover weakness is expected to come from corn and soybeans. Losses should be limited by improving export sales and tight global wheat supplies. Precipitation in the Plains last week was welcome and should help halt the decline in condition ratings, although more is needed.



Cattle futures are called steady to mixed as traders evaluate cash market fundamentals. Cash cattle finally began trading at $86 around the time that futures closed Friday. The $1 to $2 decline from the previous week was in line with expectations. However, the strong slaughter pace should help the cash market firm this week.



Lean hog futures are called steady to mixed on the open. Follow-through selling is expected to be countered by some short-covering. Cash markets are called steady to start the week. Packer margins are in the black, but the 49 cent drop in cutouts on Friday could limit higher bids today.