Corn futures are called 2 to 3 cents lower. Overnight trade was 2 1/2 to 3 cents lower in the most active contracts. Despite yesterday's bounce, it appears that fund long liquidation remains a threat to prices. However, strong demand should provide underlying support. After modest export sales last week, demand appear to have improved this week as South Korea reportedly bought 440,000 tonnes of U.S. corn.



Soybean futures are called 1 to 2 cents lower. Overnight trade was 1 1/4 to 2 cents lower. The market is expected to open lower as yesterday's technical bounce appears to be short-lived. U.S. fundamentals remain bearish and weather in South America has so far been beneficial for soybean planting and early season growth.



Wheat futures are called 2 to 4 cents lower. Overnight CBOT trade was 1 1/2 to 5 1/4 cents lower and the KCBT was 2 1/2 cents lower. The wheat market struggled to pull higher yesterday despite firm corn and soybean trade. Export demand remains unimpressive and yesterday's Stats Canada's wheat production estimate was above market expectations. Commercial buying following the recent break in prices should help limit losses.



Cattle futures are called steady to mixed as traders wait for the cash market to develop. Current ideas are for mostly steady business with last week's $86 trade. Packer margins remain in the red, but the slaughter pace is running ahead of last week and short-bought packers will need to buy some cattle today unless they plan to slow slaughter schedules.



Lean hog futures are called steady to mixed. Most packers are finished buying hogs for this week, so cash bids are expected to be mostly steady. Recent gains in the cash market and short-covering in the futures market should provide some support. Deferreds were supported by firm corn prices yesterday, but corn is called slightly lower this morning.