Corn futures are called steady to 1 cent higher. Overnight trade was 3/4 to 1 1/4 cents higher. We look for prices to consolidate recent weakness on the open. Fund selling and the larger than anticipated index fund long position have weighed on prices recently. The large fund long position leaves the market vulnerable to further weakness. However, positioning ahead of the USDA reports on Friday is expected.

Soybean futures are called 1 to 2 cents higher. Overnight trade was 1 to 4 cents higher. The market is expected to stabilize this morning following recent weakness. Technical selling, rising crop estimates for Brazil, and concern about index fund selling have contributed to recent weakness. USDA will release new supply/demand numbers on Friday. Ending stocks are expected to be bumped higher from an already record level.

Wheat futures are called mixed. Overnight CBOT trade was 1/4 of a cent higher to 2 1/2 cents lower and the KCBT was 1/2 cent lower to 1 1/4 higher. The market is expected to establish a near-term low soon. Technical weakness, concern about the long position held by index funds, and improved moisture in the Plains are all bearish factors. However, oversold conditions and hope that the recent drop in prices will stimulate export demand should provide some support.

Cattle futures are called steady to lower. The market turned lower yesterday on a technical correction from recent gains. Reports that Cargill will slow slaughter reinforced concerns about a possible backlog in markets. The recent break has done no major chart damage, but some further weakness is expected this morning.

Lean hog futures are called steady to lower. Spillover selling following yesterday's losses and the $1.13 drop in pork cutouts on Tuesday will weigh on the market. Hog supplies remain ample and demand for pork is sluggish. With cash prices moving lower, there is little support for futures.