Corn futures are called 1 to 2 cents higher. Overnight trade was 1 1/4 to 1 3/4 cents higher in the most active contracts. Futures are becoming technically oversold and are due for a bounce. The March contract dipped below chart support at $3.62 yesterday, but closed just above that level. Strong export demand remains supportive a supportive factor, but the market remains at risk for additional selling by the funds. Weekly export sales are expected to be 30 to 37 million bushels.



Soybean futures are called 3 to 4 cents higher. Overnight trade was 3 1/2 to 4 3/4 cents higher. We look for the market to rebound slightly from recent losses. However, losses we be limited by favorable weather for the crop in South America and lower crude oil prices that are weighing on soybean oil. The weekly export sales report this morning is expected to be in the 17-24 million bushels.



Wheat futures are called 2 to 3 cents higher. Overnight CBOT trade was 1 1/2 to 2 1/2 cents higher and the KCBT was 1 1/2 to 3 3/4 cents higher. A small bounce is expected this morning after recent losses were extended on Thursday. However, market sentiment remains negative following the recent beneficial precipitation in the Plains. Recent sluggish export demand and concern about fund long liquidation will limit gains. Weekly export sales are expected to be only 9-13 million bushels.



Cattle futures are called steady to mixed as the market waits for cash trade to develop. Front end cattle supplies remain ample, but beef cutout values have been rising the last week and cattle performance has been hurt enough that beef supplies will remain light relative to earlier expectations.



Lean hog futures are called steady to mixed. Short-covering helped the market recover slightly from recent weakness yesterday. Cash markets are expected to be mixed today. Ideas of firm cash markets next could provide futures some support. Packer margins have improved given the lower cash prices and rebound in pork prices. Pork cutout values were 55 cents higher on Thursday.