Corn futures are called 2 to 3 cents lower. Overnight trade was 2 3/4 to 3 cents lower. Prices are expected to setback on the open following yesterday's gains. USDA lowered the ending stocks estimate by 25 million bushels, but traders were looking for a bigger decrease. Despite very strong export sales recently, USDA left the export forecast for this marketing year unchanged.



Soybean futures are called 3 to 5 cents lower. Overnight trade was 3 1/4 to 6 1/4 cents lower. Despite bearish USDA numbers yesterday, fund buying pushed prices higher. However, we look for some weakness this morning on bearish fundamentals. U.S. ending stocks are forecast to be record high and record production is expected in South America.



Wheat futures are called 3 to 4 cents lower. Overnight trade was 2 1/2 to 5 3/4 cents lower. After yesterday's strong rally, we look for a technical correction this morning. The KCBT continues to lead the market higher, setting new contract highs again yesterday. Fundamental support continues to come from the poor crop conditions in the Plains.



Cattle futures are called steady to mixed. The futures market will continue to watch the cash market for direction. Light sales were noted in Nebraska at $2 lower on a dressed basis, but little movement has been seen in the South. There is some optimism for beef prices. Boxed beef prices are still declining, but good volume could indicate some improvement soon.



Lean hog futures are called steady to higher. The firm tone in the cash market this week and the $1.90 jump in pork cutouts on Thursday should help support futures this morning. Hogs supplies are tightening, but packers are paying up for hogs despite narrow packer margins.