Corn futures are called 1 to 2 cents higher. Overnight trade was 1/4 to 1 3/4 cents higher. Small gains are expected on the open as market sentiment is bullish although buying interest will be limited by improved harvest weather this week especially in the western and central Corn Belt. Harvest progress as of Sunday was 13% complete compared to the 5-year average of 15%. The crop is 75% mature versus the 5-year average of 67%.

Soybean futures are called 3 to 4 cents higher. Overnight trade was 2 1/2 to 4 3/4 cents higher. Some consolidation is expected this morning following recent losses. Harvest activity should pick up this week, but as of Sunday was only 9% complete, 3% below the 5-year average. Gains are expected to be limited by bearish fundamentals and the seasonal tendency to move lower at harvest.

Wheat futures are called 1 to 2 cents higher. Overnight CBOT trade was 1 to 2 1/4 cents higher and the KCBT was 3/4 to 1 1/2 cents higher. The market remains in a sideways trend. Small gains are expected this morning following the weakness yesterday. Sluggish demand for U.S. wheat and favorable conditions for the HRW crop remain bearish factors. Rain in the Plains has improved the outlook for HRW, but seeding at 36% is 3% below the 5-year average.

Cattle futures are called steady to mixed. Firm cash market trade last week and the slightly supportive August marketings number will be supportive for the front end. Deferreds will continue to be pressured by the bearish August placements and on feed estimates in the Cattle on Feed report. The negative market action in futures the past couple of weeks is a bearish concern although the cash market is expected to be steady to firm this week.

Lean hog futures are called steady to lower. Bearish cash fundamentals and fund selling are expected to weigh on futures. With hog supplies expected to remain high for the next several weeks, a significant rebound in cash and futures hog prices seems unlikely. However, a round of profit-taking from recent losses could limit losses or push some contracts slightly higher today.