Corn futures are called steady to 1 cent higher. Overnight trade was 1/2 to 1 cent higher. A small recovery rally is expected on the open for the stock market and crude oil. This should take some pressure off the corn market, although buying interest is expected to remain limited. The economy remains a very big concern as traders have been pulling money out of commodities to find safer investments.



Soybean futures are called 2 to 3 cents higher. Overnight trade was 1 to 3 1/2 cents higher. The market is expected to rebound slightly on the open following the collapse on Monday. Outside markets are expected to consolidate, with small gains expected for the stock market and crude oil overnight. China bought more U.S. soybeans yesterday, although they are expected to begin shifting to South American soybeans soon.



Wheat futures are called steady to mixed. Overnight CBOT trade was 1 to 2 1/4 cents higher and the KCBT was steady to 1/4 of a cent higher. Sluggish export demand will limit buying interest in wheat despite a small rebound in outside markets and corn and soybeans overnight. Weekly export inspections reported on Monday were only 8.7 million bushels. Weakness in the dollar overnight will be supportive for the export market, but large stocks of wheat worldwide will keep export competition strong.



Cattle futures are called steady to mixed. The sharp drop in the stock market yesterday and declining beef prices kept the cattle market on the defensive yesterday and will limit buying interest again today. But the stock market is expected to rebound slightly this morning and beef prices were firm on Monday. Choice cutouts gained $1.30 after falling to the lowest level since August 2005.



Lean hog futures are called steady to mixed. Firm cash markets and a rebound in outside markets overnight should provide some light support this morning. Cash markets were up around $2 in many locations. Packer margins are near breakeven, but hog supplies are expected to tighten. Buying interest in deferreds will remain limited by concern about the economy and pork demand. Pork cutouts were down 13 cents on Monday.