Corn futures are called 1 to 2 cents higher. Overnight trade was 3/4 to 1 3/4 cents higher. Despite the start of the new year, farmer selling has been relatively light and basis levels have firmed. Weekly export sales will be released this morning and are expected to fall in the 20-28 million bushel range.



Soybean futures are called 2 to 3 cents higher. Overnight trade was 1 3/4 to 2 1/4 cents higher. Recent sales to China and rumors of more sales were supportive yesterday. In addition country movement has been limited and basis levels have improved. Pre-report expectations for weekly export sales range from 22-29 million bushels.



Wheat futures are called steady to 1 cent higher. Overnight trade was 1/4 to 3/4 of a cent higher. The market rebounded from contract lows yesterday and we look for limited fund selling today. However, gains may be limited by weekly export sales that are only expected to be 9-13 million bushels.



Cattle futures are called steady to mixed on the open as traders wait for cash trade news. Packers are becoming short-bought, but declining beef prices will limit their willingness to raise bids. On the other hand, cattle owners may be willing to hold out for higher prices given this week's weather and fairly green showlists.



Lean hog futures are called steady to mixed. Futures remain at a premium to cash, but that has narrowed this week. Packers appear content to slow Saturday slaughter schedules due to poor margins, but limited marketings amid poor weather should help keep cash bids near steady.