Corn futures are called 2 to 3 cents lower. Overnight trade at 6:30 am CT was 2 1/2 to 3 1/4 cents lower. Strong crop condition ratings at 71% good to excellent and forecasts for below normal temperatures with several chances of rain in the Corn Belt over the next two weeks will pressure prices. However, losses are expected to be limited by concern about the slow maturity of the crop and concern about possible effects of an early frost. Corn is silking in 31% of the crop compared to the 5-year average of 54%.



Soybean futures are called 8 to 10 cents lower. Overnight trade at 6:30 am CT was 5 3/4 cents to 12 cents lower. Tight old-crop stocks and rumors of more buying interest from China could limit losses in the nearby. But deferreds are expected to be pressured by the small improvement in crop condition ratings last week to 67% good to excellent, up 1% from the previous week. Weather conditions remain generally favorable as below normal temperatures and rainfall remain in the forecast for the next week or two. But as with corn, late maturity remains a concern with only 44% of the crop blooming versus the 5-year average of 62%.



Wheat futures are called 2 to 3 cents lower. Overnight trade at 6:30 am CT was 2 3/4 to 3 cents lower at the CBOT and 3 cents lower at the KCBT. Light spillover pressure from corn and soybeans along with the lack of fundamental support is expected to leave futures to drift a little lower. Export demand has been sluggish recently, although weekly export shipments last week of 18.5 million bushels were nearly double the previous week. Spring wheat condition ratings improved to 73% good to excellent last week. Winter wheat harvest improved to 72% complete, unchanged from year-ago and only 5% below the 5-year average.



Cattle futures are called higher on the open. Boxed beef prices showed good improvement yesterday with choice cutouts up $2.09 and select cuts up $2.02. Cash trade is not expected until later in the week, but tight supplies of market ready cattle and the bounce in beef prices should help feedlots get $1 to $2 higher prices this week.



Lean hog futures are called steady to mixed. Pork cutouts have rallied sharply the past few weeks, but were down 17 cents on Monday. Cash markets have firmed as packer margins are favorable. But the premium of nearby futures to cash and some profit-taking following the recent rally will limit gains and could push some contracts lower.