Corn futures are called steady to 1 cent higher. Overnight trade was steady to 1 3/4 cents higher. After trading lower yesterday and filling a chart gap, we look for some strength. Fund buying is expected to reemerge despite the relatively bearish fundamentals for corn due to large stock levels.



Soybean futures are called 2 to 3 cents higher. Overnight trade was 1 3/4 to 2 1/2 cents higher. Profit-taking weighed on futures Monday, but prices are expected to bounce on the open. Fund buying is expected to provide support. However, gains should be limited by bearish fundamentals and caution ahead of the Supply/Demand report due out on Thursday.



Wheat futures are called 1 to 2 cents higher. Overnight trade was steady to 1 3/4 cents higher. The KCBT has been leading the way higher as dry conditions remain in the Plains. Traders are hoping for a larger portion of the recent Iraqi tender, with results expected on Wednesday. Some profit-taking from overbought conditions at the KCBT could limit gains.



Cattle futures are called mixed on the open. Packer bids and asking prices remain far apart and cash trade is not expected until later in the week. Poor margins will limit packer's willingness to pay up for cattle. The cash market tone remains weak with boxed beef prices down about $5 since the end of January.



Lean hog futures are called steady to mixed. Cash markets showed some strength yesterday as packers are in need of supplies. Futures consolidated recent losses the past two sessions, but the lack of confidence that hog prices have bottomed will limit buying interest.