Corn futures are called 7 to 8 cents lower. Overnight trade was 6 1/2 to 8 1/2 cents lower. Weakness in global stock markets overnight as well as crude oil and gold are expected to weigh on futures. Funds are still holding a large net long position, which will continue to fuel long liquidation weakness for now.

Soybean futures are called 8 to 9 cents lower. Overnight trade was 8 3/4 to 9 1/2 cents lower. The weakness in outside markets as well as the expected lower corn open is expected to pressure prices. Fundamental weakness will also come from the large crops in South America that will soon begin to choke off demand for U.S. soybeans.

Wheat futures are called 7 to 9 cents lower. Overnight CBOT trade was 8 1/2 to 9 1/4 cents lower and the KCBT was 7 to 7 1/2 cents lower. Spillover weakness from corn and soybeans as well as outside markets will pressure prices. We look for the defensive tone to persist in the near-term, but the market should begin to uncover solid fundamental support once corn prices stabilize.

Cattle futures are called steady to higher. The surge in the cash market last week should provide support. Cattle prices jumped generally $3 in the South and $5 dressed in the North. Declining cattle weights and expectations for seasonally stronger beef demand with the approach of spring will be supportive factors.

Lean hog futures are called steady to mixed as cash markets are expected to begin the week mixed. Packers are in need of hogs, but marketings should increase this morning as some hogs were backed up last week. The premium of futures to the current cash market may limit strength in the front end.