Corn futures are steady to a penny lower. Overnight trade was unchanged to 3/4 of a cent lower. Futures are drifting toward chart support levels. Still, in thin holiday trade the market is particularly vulnerable to long liquidation by the funds, which are estimated to be holding a net long position of nearly 290,000 contracts. Spreads are also a feature as traders unwind bull spreads.



Soybean futures are called steady to fractionally higher. Overnight trade was 1/4 to 3/4 cents higher. South American weather is generally favorable. Argentina has received soaking rains while precip is forecast for the dry areas of southern Brazil this week. Technically, soy futures gapped lower Monday to post six-week lows. The overhead gap in the low $6.50s for Jan. futures offers near-term resistance.



Wheat futures are called steady to 2 cents lower. Overnight CBOT trade was 1 to 2 cents lower and the KCBT was steady to 1/2 cent lower. Light precip overnight of 0.1 to 0.33 of an inch fell in the Texas panhandle overnight. More snow/rain is expected across the dry areas of the Plains over the next day or so. New-crop futures are approaching chart support levels along up trending support lines.



Cattle futures are called 10 to 20 points higher. The forecast for a winter storm across the Plains has helped boost prices the past two trading sessions so it's arrival, while supportive, should largely be factored into prices. The trade is looking for Friday's cattle on feed report to show a sharp 9% cut in placements with cattle on feed up only 2%. Boxed beef prices edged down slightly Monday with choice down 18 points to 144.50 per cwt.



Lean hog futures are called steady. Cash markets are also called steady to .50 lower, but stronger pork cutout values Monday should help underpin values. Cash prices are expected to drift lower this week as processor demand for hogs ease ahead of next week's holiday shortened slaughter schedule. Losses will likely be limited by bargain hunting and short-covering after the recent setback.