Corn futures are called 2 to 3 cents lower. Overnight trade was 1 1/4 to 3 3/4 cents lower. Some follow-through long liquidation is expected this morning as funds continue to take some profits from the recent rally. The market will continue to watch for any news from the USDA about rumor regarding easing penalties for early outing CRP acreage.



Soybean futures are called 2 to 3 cents lower. Overnight trade was 1 1/4 to 3 1/4 cents lower. With corn lower and bearish fundamentals, soybeans were strongly lower on Monday. Traders were taking profits on recent gains as the supply/demand balance sheet remains bearish. Weather conditions in South America have been generally favorable for planting and early season growth.



Wheat futures are called 1 to 2 cents lower. Overnight CBOT trade was 2 1/2 cents lower and the KCBT was 1 to 1 1/4 cents lower. Spillover weakness is expected from corn. However, improved weekly export inspections last week could provide support as traders expect export demand to improve. USDA is done issuing condition ratings until spring. Weather forecasts for the HRW belt remain relatively dry although there is no extreme cold that would threaten the winter wheat crop.



Cattle futures are called steady to higher. Firming beef prices and ideas of firm cash markets this week should offer support. Choice boxed beef prices were up $1.24 yesterday. Packers have increased chain speeds to start the week. However, technical selling following yesterday's weakness could limit buying interest.



Lean hog futures are called steady to firm. Cash markets are expected to open mostly steady. Packer margins remain in the black and will benefit from the 53 cent jump in pork cutouts on Monday. Some short-covering is expected in the futures market on ideas yesterday's losses were overdone.