Corn futures are called steady to 1 cent lower. Overnight trade was steady to 1/2 of a cent lower. The lack of fund buying and bearish fundamentals weighed on prices yesterday and that is expected to spill over into the open. The market is vulnerable to a setback if funds unwind their long position, but we don't expect that right away. Funds are expected to remain on the buy side into the spring.



Soybean futures are called steady to 1 cent lower. Overnight trade was 1 1/4 cents lower. Despite some dry spots in Argentina and southern Brazil, record production is still expected in South America. Soybean fundamentals remain bearish with ideas that USDA will need to lower their export forecast. On the other hand, NOPA crush last month was above trade expectations.



Wheat futures are called 1 to 2 cents lower. Overnight trade was 1/2 to 1 1/2 cents lower. The market has been correcting the recent spike, but prices bounced off their lows late yesterday. This could indicate that the correction is done, but futures are still expected to open on the defensive this morning. Iraq has passed on U.S. supplies during a recent export tender because prices were too high.



Cattle futures are called steady to mixed. Cash trade remains on hold, but packer in the South will need to business soon. A smaller slaughter schedule has helped boxed beef prices bounce with the $1.48 to $1.58 jump on Tuesday. However, packer margins remain in the red.



Lean hog futures are called steady to lower. Ideas that the cash market may be reaching a near-term high and the spot April month's premium to cash could weigh on futures. However, tightening hog supplies and the steadily higher pork cutout values will offer support.