Corn futures are called 6 to 7 cents lower. Overnight trade was 6 3/4 to 7 1/2 cents lower in most active months. The bearish USDA numbers from Monday morning and pressure from outside markets will weigh on the futures market this morning. USDA raised the 2008 crop and slashed usage to raise ending stocks by over 300 million bushels. The world ending stocks estimate was also raised. Outside markets are bearish as crude oil and gold were lower overnight while the dollar index posted strong gains.



Soybean futures are 3 to 4 cents higher. Overnight trade was 2 1/2 to 4 1/2 cents higher. USDA reports on Monday were moderately bearish, but outside markets also pressured prices. However, soybean futures rebounded from yesterday's losses overnight. While ending stocks were raised 20 million bushels, 225 million bushels is still fairly tight. In addition, export demand remains strong evidenced by China buying 399,000 tonnes of soybeans from the U.S. on Monday. Gains will be limited by outside markets as crude oil and gold were lower overnight while the dollar index rallied.



Wheat futures are called 2 to 3 cents lower. Overnight CBOT trade was 1 1/2 to 2 3/4 cents lower and the KCBT was 2 to 4 1/4 cents lower. The increase in U.S. and world ending stocks estimates yesterday are expected to weigh on the market. Outside markets are also expected to provide some pressure. However, the market should find some support, especially in new-crop months, from the sharp decline in winter wheat seedings. Winter wheat acreage was estimated at 42.1 million, down 4.1 million from last year and 2.2 million below the average trade estimate.



Cattle futures are called steady to mixed. Strength in boxed beef prices and improved packer margins will be supportive. Choice cutouts gained $2.12 on Monday. Cash markets are expected to be firm this week. However, buying interest in deferred contracts is expected to be limited by expectations for the stock market to open lower, leading to concerns about the economy and declining domestic beef demand.



Lean hog futures are called steady to mixed. Wintry weather in the Midwest will disrupt marketings this week and hamper rate of gains. This may support the front end, but weigh on deferreds as backed up hogs would hit the market later. Deferreds could also be pressured by strength in the dollar index overnight, which is a negative factor for pork exports.