Corn futures are called steady to mixed. Overnight trade was 1/2 of a cent lower to 1/2 higher. Large old-crop supplies remain a bearish factor, but new-crop projections look more favorable. Export demand has been strong recently and should benefit from a smaller crop in Argentina. The Argentine government lowered their corn production yesterday to 13.8 million tonnes, down 6.7 million tonnes from last year's crop.



Soybean futures are called steady to 1 cent higher. Overnight trade was steady to 1 1/2 cents higher. We look for technical support to help the market bounce a little from losses the past two sessions. Cooler temperatures and rainfall in southern Brazil and Argentina along with concern that bird flu will dampen soybean meal demand remain bearish factors.



Wheat futures are called 1 to 2 cents lower. Overnight trade was 1 1/2 to 2 3/4 cents lower. The market is expected to continue consolidation of the run to contract highs or highs for the move set earlier this week. Losses will be limited by continued poor crop conditions in the central and southern Plains. Drought and winterkill has damaged HRW production potential.



Cattle futures are called steady to higher. Cash trade developed at $89 in Nebraska yesterday, up $1 from the previous week. Firming boxed beef prices are expected to encourage trade in the south today where asking prices are $91-$92. Boxed beef prices were $1.11 to $1.75 higher.



Lean hog futures are called steady to lower. The cash market remained firm on Wednesday, but packers are expected to hold bids steady or lower bids the rest of the week as margins are poor. Light profit-taking on yesterday's decline could create some choppy trade today.