Corn futures are called steady to 1 cent lower following overnight trade that ended that way. We look for some choppy, range-bound trade ahead of the Crop Production report due out on Thursday morning. Traders are looking for the production number to slip about 70 million bushels from October. Harvest progress was 81% complete as of Sunday, just 1% below average.



Soybean futures are called 1 to 2 cents lower. Overnight trade was 1/2 to 2 1/2 cents lower. Choppy trade is expected ahead of the USDA reports. Fundamentals remain relatively bearish as the trade is looking for a nearly 50 million bushel increase in this year's crop with carryout rising to a record high 583 million bushels. However, speculative buying interest will help limited any losses.



Wheat futures are called steady to mixed. Overnight CBOT trade was steady to 2 cents higher and the KCBT was 1/2 cent lower to 2 1/4 cents higher. Dryness in China wheat country has attracted some speculative buying interest, but upside enthusiasm was limited on Monday. Winter wheat planting progress at 94% is in line with the 5-year average, but condition ratings did improve to 59% good to excellent versus 54% the previous week.



Cattle futures are called steady to mixed as traders wait for cash business to develop later this week. Showlists are larger, but packers aggressive slaughter schedules could help keep cash bids from declining. Technical selling following recent losses is expected to be countered by short-covering.



Lean hog futures are called steady to mixed. Cash markets are expected to be steady on good packer demand. However, strength in cash and futures will be limited by ample hog supplies and concern that packers will slow slaughter later this week given the tightened margins. Pork cutouts were $1.04 lower on Monday.