Corn futures are called steady to 1 cent lower. Overnight trade in most active contracts was 1/4 to 1/2 of a cent lower. Prices are expected to drift lower over the next few weeks as crop conditions have improved with the favorable August weather. Losses should be limited by support at contract lows and strong export demand.

Soybean futures are called steady to 1 cent higher. Overnight trade was 1/2 to 1 1/2 cents higher. Light technical buying due to oversold conditions is expected on the open. Futures were slightly higher on Tuesday, but were held back due to losses in corn and wheat. Rally attempts will continue to be limited by favorable weather forecasts and improved crop condition ratings this month.

Wheat futures are called 1 to 2 cents higher. Both CBOT and KCBT overnight trade was 1 to 1 1/2 cents higher. A small bounce is expected on the open following losses yesterday. However, gains are expected to be limited as the downward trend since mid July is expected to continue for the next couple of weeks. Sluggish export demand and rainfall in the Plains that has improved winter wheat crop prospects are bearish factors.

Cattle futures are called steady to mixed. The market was slightly lower on Tuesday, giving back some of the recent gains. However, we look for choppy action today as traders wait for cash trade to develop for direction. Wholesale beef prices have turned weaker, but relatively tight cattle supplies are expected to hold prices firm again this week.

Lean hog futures are called steady to mixed. The recent strong rally to contract highs seems to be running out of steam. Nevertheless, cash fundamentals remain supportive with steady to higher cash bids expected again this morning. Pork demand remains strong with cutouts gaining 93 cents on Tuesday.