Corn futures are called 2 to 3 cents higher. Overnight trade at 6:30 am CT was 1 1/2 to 3 1/2 cents higher. Some light short-covering support is expected this morning as traders begin to gear up for the USDA reports due out on Wednesday morning. Recently strong export demand has prompted some commercial buying in the nearby. New-crop gains will be limited by rainfall in the Corn Belt and forecasts for more seasonal temperatures this week.



Soybean futures are called mixed. Overnight trade at 6:30 am CT was 4 1/2 higher in the old-crop September contract while new-crop November was 1/2 of a cent lower. Choppy, pre-USDA report trade is expected today and tomorrow. USDA's Crop Production and Supply/Demand report will give the market direction on Wednesday morning. Old-crop fundamentals remain bullish with tight old-crop stocks and continued export demand. For new-crop, near-term weather is generally bearish as rainfall in the Midwest will benefit crop conditions while forecasts call for some relief from the hot temperatures over the weekend.



Wheat futures are called steady to mixed. Overnight trade at 6:30 am CT was 1/4 of a cent lower to 1/4 higher at the CBOT, steady to 1/4 cent lower at the KCBT and 1 cent higher at the MGE. Recent weakness could lead to some light short-covering ahead of the USDA reports due out on Wednesday morning. However, fundamentals remain mostly bearish. World wheat supplies remain ample and export demand has been sluggish. Weekly export shipments to be reported this morning need to average nearly 19 million bushels per week to reach USDA's export forecast this marketing year, while last week's number was only 13.5 million.



Cattle futures are called steady to mixed. Cash market trade was generally lower last week, with live trade on Friday at $81 compared to mostly $82 the previous week. Beef prices were steady on Friday, but there is some optimism that wholesale beef prices will soon begin to improve as retailers begin placing orders for Labor Day weekend.



Lean hog futures are called steady to higher. The recent implosion in hog futures is expected to lead to some short-covering from technically oversold conditions. However, gains will be limited by weakness in the cash market as marketings remain ample to fill packer slaughter schedules. Ideas of forced liquidation in the hog market will remain a bearish factor for front end lean hog futures.