Corn futures are called 2 to 3 cents lower. Overnight trade was 2 1/4 to 3 1/4 cents lower. Technical support was able to hold last week, but the funds are still heavily long futures so further liquidation could keep pressure on prices over the near-term. Traders will also be gearing up this week for the Stocks and Supply/Demand reports due out Friday morning.



Soybean futures are called 4 to 5 cents lower. Overnight trade was 4 to 5 1/2 cents lower. Most fundamental news for soybeans remains bearish. The market is looking for USDA to raise their 2006 production number, adding to the ending stocks number in the USDA reports due out Friday morning. In addition, weather conditions remain favorable for most of the soybean crop in South America.



Wheat futures are called 2 to 3 cents lower. Overnight CBOT trade was 2 1/2 to 2 3/4 cents lower and the KCBT was 1 1/2 to 2 cents lower. Expected spillover weakness from corn and soybeans and continued concern about sluggish export demand are expected to weigh on prices this morning. Friday's bounce higher left a near term reversal low on the charts. However, the market remains technically weak and fundamentals offer little reason for a bounce.



Cattle futures are called steady to higher. Cash trade developed late on Friday at $89 to $90, up about $1 from last week although trade volume was light in many areas. Strength in beef prices and forecasts for another winter storm to hit the Plains will be supportive factors. Boxed beef prices were $0.69 to $1.60 higher on Friday.



Lean hog futures are called mixed. Cash markets are expected to be steady to firm as packers will need to buy hogs early this week to fill slaughter needs. Packer margins had been improving, but Friday's $1.41 drop in pork cutouts may limit packer's willingness to raise bids much.