Corn futures are called 1 to 2 cents lower. Overnight trade was 1 1/4 to 2 1/2 cents lower. Ideas that yesterday's rally was a little overdone and increasing harvest activity in the Corn Belt is expected to weigh on the market. Strong demand for corn is expected to limit losses. Weekly export sales to be reported this morning are expected to be in the 32-39 million bushel range.



Soybean futures are called 1 to 2 cents higher. Overnight trade was 3/4 to 2 cents higher. Despite harvest progress and ideas of a large crop, the market has been able to rally. Commodity fund buying across the ag commodities sparked short-covering in soybeans yesterday. Weekly export sales are expected to be 26-33 million bushels. Sales at this level would be very strong and could offer the market support.



Wheat futures are called steady to mixed. Overnight CBOT was 1/2 to 1 cent higher in front end contracts, but lower in deferreds while the KCBT was 5 1/2 to 7 cents higher. Export demand reported on Wednesday provided fundamental support yesterday, with aggressive fund buying pushing prices strongly higher. Weekly export sales are only expected to be 13-18 million bushels, but recent sales to Egypt and Iraq have provided optimism that demand will continue to improve.



Cattle futures are called steady to mixed. Traders will be waiting for the cash market to develop for direction with front end contracts holding in a trading range recently. Cash prices are expected to be firm again this week, but there is concern that packers will soon slow the slaughter pace due to operating losses. Boxed beef prices were 12 to 19 cents higher on Wednesday, but those are small numbers given recent gains in cash bids.



Lean hog futures are called steady to mixed. The cash market has shown good strength this week, but there is concern that the current prices will not be sustained due to packer margins turning negative. Regardless, packers have continued to bid up supplies this week to fill slaughter needs as marketings have been on the light side.