Corn futures are called steady to mixed. Overnight trade was steady to 1/2 of a cent higher. Choppy consolidation type trade is expected today. Futures posted a new contract low in the December contract yesterday. The influence of weather is fading, but favorable August conditions and ideas of increased production will continue to limit rally attempts.



Soybean futures are called steady to mixed. Overnight trade was 1/2 cent higher to 1 1/4 cents lower. The market is called mixed with light short-covering from technically oversold conditions and firm basis levels being countered by favorable weather. Rally attempts have failed recently as August weather conditions and forecasts for the next couple of weeks are generally favorable.



Wheat futures are called 1 to 2 cents higher. Overnight CBOT trade was 1/2 to 2 1/4 cents higher and KCBT was 1/4 to 2 cents higher. A small technical bounce is expected this morning following yesterday's speculative long liquidation. However, gains will be limited by the negative market tone and sluggish export demand, especially for HRW.



Cattle futures are called mixed. Traders are waiting for the cash market to develop and will also be positioning ahead of this afternoon's Cattle on Feed report. Firm cash prices are still expected this week, but ideas of the wholesale beef market establishing a near-term top will limit gains. Pre-report trade expectations for the Cattle on Feed report are for a 15% increase in July placements and inventory up 6%-7% from last year.



Lean hog futures are called steady to higher. Cash markets are expected to be steady to firm again today. Bullish momentum with contracts hitting new highs yesterday and the 70 cent jump in pork cutouts on Thursday will be supportive. However, recent gains could encourage some profit-taking ahead of the weekend.