Corn futures are called steady to 1 cent lower. Overnight trade was 1/4 to 1 1/4 cents lower. We look for some consolidation trade this morning following the strong gains on Thursday. Wet Midwest weather and the resulting harvest delays will remain a supportive factor. However, gains in the near-term are expected to be limited by the pending harvest and prospects of an increase in the production estimate.

Soybean futures are called steady to 1 cent lower. Overnight trade was 1/4 of a cent higher to 1 1/2 cents lower. Strong export demand and harvest delays due to cool and wet Midwest weather supported the market yesterday. However, we look for choppy trade today on some profit-taking from recent gains and the underlying bearish supply/demand fundamentals.

Wheat futures are called 2 to 3 cents lower. Overnight CBOT trade was 2 1/2 to 3 3/4 cents lower and the KCBT was 2 1/2 cents lower. Speculative buying boosted futures on Thursday and gains were extended once technical resistance was broken, but light profit-taking is expected to weigh lightly on the market this morning. Global supply/demand fundamentals remain supportive, but demand for U.S. wheat has been rather sluggish so far this marketing year. In addition, gains will be limited by beneficial precipitation in the Plains.

Cattle futures are called steady to mixed as traders wait for cash trade to develop and for the Cattle on Feed report due out this afternoon. Report numbers are expected to bearish, with large August placements and numbers of cattle on feed. Packer margins continue to shrink as beef prices fell another $0.75 to $1.23 on Thursday, prompting ideas of lower cash trade this week compared to the $88.50-$89 trade last week.

Lean hog futures are called lower. Pork cutout values continue to decline with losses yesterday of $2.20. Cash bids are expected to be $1-$2 lower again today. Futures remain at a discount to cash, but technically bearish charts and the weak cash fundamentals are expected to keep futures on the defensive.