Corn futures are called 7 to 8 cents higher. Overnight trade was 6 1/2 to 7 3/4 cents higher. Outside markets are expected to provide some support with firm crude oil and gold trade overnight. Weekly export sales last week were much improved and a marketing year high. Forecasts for more hot and dry weather in Argentina will be supportive for corn and soybeans. Crop production prospects there have been sharply cut.



Soybean futures are called 16 to 17 cents higher. Overnight trade was 16 to 16 3/4 cents higher. While light rains fell this weekend in Argentina, forecasts call for mostly warm and dry weather this week. Crop conditions are expected to continue to deteriorate even through some areas will see temporary relief. Outside markets are expected to provide some light support this morning as well. Export demand continues to be strong although demand from China will be slow this week due to their New Year celebrations.



Wheat futures are called 10 to 12 cents higher. Overnight CBOT trade was 12 1/4 to 13 1/4 cents higher and the KCBT was 9 3/4 to 10 1/4 cents higher. Spillover support from corn and soybeans along with some strength in outside commodities are expected to push wheat futures higher. Dry conditions in the southern Plains remains a problem for the HRW wheat belt. Gains will be limited by sluggish export demand and the higher trend in the dollar index which will make U.S. wheat less competitive on the world market.



Cattle futures are called higher on the open. Short-covering is expected to be triggered by the bullish Cattle on Feed report. Cattle on Feed as of January 1 were down 7% from a year ago and the lowest January 1 total in six years. Placements during December were down 3% with marketings up 2%. Placements were slightly below expectations with marketings a little higher, both contributing to the lower on feed total.



Lean hog futures are called steady to mixed. The futures market is becoming technically oversold and contracts are at or near contract lows. Cash fundamentals remain shaky as packer margins are poor and pork cutouts were down 32 cents on Friday. But the cash market is called steady as hog supplies are expected to tighten over the next few weeks.