Corn futures are called 1 to 2 cents higher. Overnight trade was 2 to 2 1/4 cents lower. Generally favorable weather forecasts for crop development are expected to weigh on the futures market. Seasonal temperatures with several chances of rain are expected in the Corn Belt over the next couple of weeks. However, losses will be limited by positioning ahead of the Acreage and Grain Stocks reports that are due out on Tuesday morning.



Soybean futures are called 3 to 5 cents higher in old-crop contracts. Overnight trade was 2 1/4 to 5 1/4 cents higher in the Jul and Aug contracts while the Nov was only up 3/4 of a cent. The market saw small gains overnight, but choppy trade is expected ahead of the USDA reports due out on Tuesday morning. Tight old-crop stocks and what may be a bullish weekly export inspections report this morning could be supportive. But gains in new-crop will be limited as traders look for USDA to raise their June 1 acreage estimate from March planting intentions.



Wheat futures are called 3 to 4 cents higher. Overnight CBOT trade was 2 3/4 to 4 1/4 cents higher and the KCBT was 4 to 4 1/4 cents higher. Some short-covering ahead of the USDA reports due out Tuesday morning is expected to provide light support. Favorable harvest weather over the weekend and forecasts for the next week will limit gains. Sluggish export demand is also expected to limit gains. Weekly export shipments will be reported this morning. Shipment need to average 17.6 million bushels per week to reach USDA's export forecast while last week they were only 13.3 million bushels.



Cattle futures are called steady to mixed. Cash trade developed on Friday at $82 in the South, steady with the previous week. While this should be slightly supportive, gains in the futures market will be limited by concern about sluggish beef demand. Boxed beef prices were down again on Friday, with choice cutouts down 76 cents. We look for some choppy trade on cash market uncertainty in the holiday shortened trading week.



Lean hog futures are called steady to mixed. While the Hogs and Pigs report that was released on Friday was near trade expectations, it will likely be bearish for deferreds as the report showed only a modest 2.7% cut in the breeding herd inventory compared to June 2008 and a 2% reduction in the market hog inventory. Pork demand remains sluggish, although pork cutouts were able to move 42 cents higher on Friday.