Corn futures are called steady to 1 cent lower. Overnight trade was 1/2 to 1 cent lower. Light technical selling and generally bearish fundamentals are expected to push prices a little lower this morning. Fund buying has been absent in the market the past few session and despite improved export demand, corn stocks remain large.



Soybean futures are called steady to 1 cent lower. Overnight trade was 1/4 to 1 cent lower. Dry weather in Argentina and southern Brazil got the markets attention yesterday, but buying interest was limited. The market is being held back by the forecast for record U.S. ending stocks and USDA's export forecasts still too high.



Wheat futures are called steady to 1 cent lower. Overnight trade closed 1/4 to 1 1/4 cents lower. Follow-through selling is expected from yesterday's losses. The market was disappointed that Iraq will not be buying any U.S. wheat from a recent export tender. Losses will be limited by the poor winter wheat conditions. The Texas wheat crop is rated 89% poor to very poor.



Cattle futures are called steady to lower. Spillover selling and ideas of lower cash trade this week will be negative factors. Packers are short on supplies, but recent losses in futures and negative margins will encourage them to hold out for lower prices. Showlists in the South are large due to the limited trade last week.



Lean hog futures are called steady to mixed. The firm cash market has been supportive to the front end, but February expires at noon today. Packer margins are poor, so unless pork cutouts can post substantial gains the cash market rally is expected to stall soon. Pork cutouts were 28 cents higher on Monday.