Corn futures are called 1 to 2 cents lower. Overnight trade was 1 to 3 cents lower. Short-covering helped pull prices slightly higher yesterday, but bearish fundamental news this week could weigh lightly on futures this morning. USDA lowered usage and raised production, leading to the over 300 million bushel increase in ending stocks. However, firm crude oil prices overnight and dry weather concerns for Argentina's corn crop will limit losses.

Soybean futures are called 5 to 6 cents higher. Overnight trade was 4 to 6 1/4 cents higher in most active contracts. The weekly export sales report will be released this morning and sales are expected to be supportive again. Trade estimates range from 15-22 million bushels. While export demand remains supportive, soybean crush continues to slow as evidenced by the NOPA crush report yesterday morning. South American weather will continue to be watched closely. Parts of Argentina and southern Brazil are expected to receive some rain, but crops in much of Argentina will continue to be stressed by dry weather.

Wheat futures are called 3 to 4 cents lower. Overnight CBOT trade was 2 3/4 to 4 cents lower and the KCBT was 3 cents lower. The bearish supply/demand revisions for the U.S. and world earlier this week will continue to be an underlying bearish factor. However, weekly export sales due out this morning could provide some direction. Pre-report trade estimates range from 7-15 million. Some weakness in the dollar index overnight will be slightly supportive.

Cattle futures are called steady to mixed. Traders are waiting for cash trade to develop. Packers are expected to raise bids given the sharp jump in boxed beef prices and improved margins this week. Gains will be limited by concern about the economy and recession fears that would likely hamper beef demand.

Lean hog futures are called steady to lower. Declining pork prices and concern about the economy will weigh on futures. Pork cutouts were down $1.64 on Wednesday and cash bids could decline late this week or early next week once marketings improve as temperatures moderate from frigid levels.