Corn futures are called 1 cent higher. Overnight trade was 1 1/4 to 1 1/2 cents higher. Strong demand for exports, ethanol, and feed should be supportive. The Cattle on Feed report on Friday showed feedlot inventory up 8% from last year. The market will begin gearing up for the Quarterly Stocks and Prospective Plantings report due out Friday.



Soybean futures are called 4 to 5 cents higher. Overnight trade was 4 1/2 to 5 cents higher. Futures are expected to remain choppy ahead of the USDA reports due out on Friday. Gains will be limited by trade expectations for a strong increase in soybean planting intentions and bird flu concerns. However, both of these issues have been in the market for some time.



Wheat futures are called steady to mixed. Overnight trade was 1 cent lower to 1 1/4 cents higher. There was only light precipitation in the central Plains this past weekend, but better chances are expected later this week. Choppy markets are expected as forecasts will continue to watched for direction.



Cattle futures are called 25 to 50 points lower on the open. The Cattle on Feed report released after the close on Friday were on the bearish side of expectations. Feedlot inventory is up 8% from last year, placements were up 5%, and marketings were down 1%. However, we believe downside risk is limited and would not be surprised by a bounce during the session.



Lean hog futures are called steady to higher. Spillover support from last week and the 81 cent jump in pork cutouts on Friday should help support futures. Cash bids are expected to be mostly steady as packers are in need of supplies for the week, but hog numbers remain ample.