Corn futures are called 2 to 3 cents lower. Overnight trade was 1 1/2 to 3 cents lower. Funds continue to hold a very large long position and overnight trade indicates that we will see some long liquidation this morning. However, continued strong export demand should help to limit losses.

Soybean futures are called 3 to 4 cents lower. Overnight trade was 3 1/4 to 4 1/4 cents lower. The soybean market has been choppy as of late, but weakness in corn is expected to pressure prices on the open. Soybeans need to stay in step with corn as the crops jockey for acreage next spring. Weather conditions in Brazil remain generally favorable although there is some trade talk about dry conditions in southern regions.

Wheat futures are called steady to 1 cent lower. Overnight CBOT trade was steady to 1/2 cents lower and the KCBT was 1 to 1 3/4 cents lower. Speculative selling weighed on prices yesterday and is expected to continue on the open. Sluggish export demand remains a bearish market factor. Technically, the market remains weak after recently falling below chart support at the mid November lows.

Cattle futures are called steady to lower. Light cash trade developed in the north at $135 dressed and $86 in the south, down $1-$2 from last week. The INS raids on four Swift beef packing plants could continue to slow slaughter for the near-term, which would backup market ready cattle.

Lean hog futures are called steady to mixed. The market was able to rebound from early losses to close mixed yesterday. Cash markets are expected to stabilize today. Packer margins remain favorable although pork cutouts were down 37 cents on Tuesday. Nearby futures premium to the lean hog index will limit buying interest in the front end.