Corn futures are called 1 to 2 cents lower. Overnight trade was 1 3/4 to 2 1/2 cents lower. The market is expected to remain volatile and some weakness is expected following the push to new contract highs yesterday. Strong demand will remain an underlying supportive factor as weekly export sales continue at a strong pace.



Soybean futures are called 3 to 4 cents lower. Overnight trade was 2 to 5 3/4 cents lower. The soybean market is expected to follow corn again. The market has been able to move higher despite bearish supply/demand fundamentals. Demand remains strong, but supplies are large enough that ending stocks are expected to be record large.



Wheat futures are called 2 to 3 cents lower. Overnight CBOT trade was 1 3/4 to 3 1/2 cents lower and the KCBT was 1 1/4 to 4 1/2 cents lower. Spillover selling from corn is expected to weigh on wheat trade. Even though the market has posted a solid rebound from the mid-November lows, the overall trend is sideways.



Cattle futures are called steady to mixed as traders wait for some direction from the cash market. Packers continue to show no urgency about buying cattle as wholesale beef prices are drifting lower and packer margins are in the red. However, the futures market appears to have established a significant near-term bottom yesterday.



Lean hog futures are called steady to mixed. Cash prices are expected to be mostly steady in light volume. Choppy futures trade is expected as some follow-through buying will be countered by profit-taking on the recent rally ahead of the weekend.