Corn futures are called 1 to 2 cents lower. Overnight trade was steady to 2 1/4 cents lower. The weak technical performance on Monday is likely to prompt some further selling today. However, losses should be limited on positioning ahead of the Grain Stocks and Prospective Plantings report due out Friday. The market remains at risk of further long liquidation, but losses could be prevented by a lower than expected acreage estimate or too wet planting conditions.



Soybean futures are called 1 to 2 cents lower. Overnight trade was steady to 2 3/4 cents lower. Follow-through speculative long liquidation and bearish old-crop fundamentals are expected to keep pressure on the market. Soybean production estimates continue to rise for Brazil and Argentina. Positioning ahead of the USDA reports on Friday should help limit losses over the next few days.



Wheat futures are called steady to 1 cent lower. Overnight CBOT trade was steady to 1 cent lower and the KCBT was 1 cent higher to 3 1/2 cents lower. Negative chart patterns, favorable weather in the Plains, and slow exports will continue to pressure the market. However, we would expect to see some short-covering this week ahead of the USDA reports due out on Friday morning.



Cattle futures are called steady to mixed. Futures were able to bounce off of lows on Monday on ideas that the wholesale beef market is bottoming. Increasing seasonal demand should help pull beef higher, although boxed beef was $0.88 to $1.62 lower on Monday. Smaller showlists should help the cash market stabilize this week.



Lean hog futures are called steady to mixed. Front end contracts are expected to find light support from steady to firm cash markets. Declining corn prices have been a weight on deferred contracts. Choppy trade is expected this week ahead of the Quarterly Hogs and Pigs report.