Corn futures are called 1 to 3 cents higher. Overnight trade was unchanged to 1 1/4 to 2 3/4 cents higher. Futures staged a solid technical performance Tuesday and with gains overnight March futures are challenging minor resistance at $3.76. Taiwan and Israel bought corn overnight. Funds were reported to be net buyers Tuesday, which suggests their net long position has ballooned to a record level of close to 295,000 contracts. We view possible liquidation of this position as the biggest threat prices over the next few weeks.



Soybean futures are called steady to a penny higher. Overnight trade was 3/4 to 1 1/4 cents higher. After posting six week lows early this week, soybean futures have bounced back with futures moving to close a chart gap left Monday near $6.55 Jan futures. South American weather remains favorable. Rainfall accumulations of 1.0 to 2.0 inches or more fell across southern Brazil over the past day or so. The Nov census crush will be out Thursday. Expectations are 154 to 155 mil bus. The oil yield will be a key focus of attention.



Wheat futures are called 1 to 3 cents higher. Overnight CBOT trade was 1 1/2 to 3 cents higher and the KCBT was steady to 2 3/4 cents higher. Funds renewed their buying Tuesday after a mini liquidation phase. Funds still are net long wheat across the exchanges. The winter storm in the Plains is bringing needed moisture to the winter wheat crop, but it's positive impact on the crop seems largely discounted by the market. The slow pace of U.S. export demand remains the long-term underlying concern for the wheat market into the new year.



Cattle futures are called 10 to 20 points lower. A winter storm is bearing down on the Plains. Still, Tuesday's weak close and another setback in beef prices are likely to weight on futures. The choice cut out fell $1.70 to 142.70 Tuesday while select was down $.89 to 126.63. Ideas are cash cattle will trade steady to slight higher than the $85.00 to $85.50 reported last week. Support may stem from expectations for a sharp cut in November placements when USDA releases the Cattle on Feed report Friday.



Lean hog futures are called steady. Cash markets are also called steady to firm. Pork prices drifted lower on Tuesday with the cut out down $.18 to $64.38. Cash hogs have been weak, but producers appear to be resisting the lower bids and another winter storm may limit marketings in the west as packers gear up for a heavy Saturday slaughter. Futures remain locked in a fairly well defined intermediate downtrend.