Corn futures are called steady to 1 cent lower. Overnight trade was 3/4 to 1 1/2 cents lower. The market has been drifting lower recently and the large net long position held by the funds makes futures vulnerable to further selling. However, prices are nearing technical support and uncertainty regarding 2007 acreage and weather should limit losses.



Soybean futures are called 1 to 2 cents higher. Overnight trade was 1 1/2 to 2 1/4 cents higher. Soybeans were able to gain on corn yesterday and are expected to again this morning as traders worry about corn taking acreage from soybeans this spring. Gains will be limited by the harvesting of the large crops in Brazil and Argentina that will soon begin to choke off export demand for U.S. soybeans.



Wheat futures are called steady to mixed. Overnight CBOT trade was 1/4 of a cent lower to 1/2 higher and the KCBT was steady to 1/2 cent higher. The weak close on Monday leaves the market looking a little vulnerable, but futures were able to hold above technical support. Favorable production prospects in the U.S. and globally will remain a bearish factor.



Cattle futures are called steady to mixed. Tight supplies of market ready cattle and rising beef prices will be supportive for front end contracts. Choice beef prices were up $4 and Select cuts were $2.24 higher on Monday. However, the recent jump in futures leaves the market vulnerable to some additional profit-taking.



Lean hog futures are called steady to higher as the market bounces from yesterday's losses in deferred months. The cash market is expected to be steady to firm. Hog fundamentals are generally good so the drop in hog futures on Monday may turn out to be a temporary correction.