Corn futures are called 4 to 5 cents higher. Overnight trade was 3 to 5 1/4 cents higher. The rally in soybeans and outside markets overnight are expected to provide some support for corn. Crude oil was higher overnight while the dollar index was lower. Hot and dry weather in Argentina is a concern for soybeans, but also for the corn crop. Gains are expected to be limited by the bearish USDA revisions from Monday when corn ending stocks were raised over 300 million bushels from the previous month.

Soybean futures are called 15 cents higher. Overnight trade was 14 1/2 to 16 1/2 cents higher in most active months. Concern about weather conditions in Argentina and outside markets will be supportive. Updated forecasts overnight show reduced rainfall this weekend in areas of Argentina that are already very dry. A high pressure ridge is expected to keep it warm and dry through the middle of next week. Firm crude oil and gold futures overnight and weakness in the dollar will also be supportive.

Wheat futures are called 3 to 5 cents higher. Overnight CBOT trade was 4 to 5 cents higher and the KCBT was 3 cents higher. Spillover support is expected from corn and soybeans this morning. The sharp drop in winter wheat acreage is also a supportive fundamental factor. Weakness in the dollar and firm crude oil prices may also contribute to a small rally. However, gains will be limited by the increased U.S. and world ending stocks estimates by the USDA on Monday.

Cattle futures are called steady to higher. Rising beef prices and improved packer margins are expected to support the cash market this week. On Tuesday, choice cutouts were up $1.66 and select cuts were $2.47 higher. However, gains may be limited by continued concern about the economy and the negative affects that will have on beef demand.

Lean hog futures are called steady to lower. Tightened packer margins following the $1.08 drop in pork cutouts on Tuesday are expected to limit packer bids. Futures may give back some of the premium held to the cash market. While cold weather may disrupt hog marketings, it will only be temporary.