Corn futures are called sharply higher on the open. The March through July contracts were up the limit overnight, but December 2007 was up only 7 1/2 cents. USDA's bullish ending stocks estimate of only 752 million bushels and strong demand projections will continue to be supportive. The market will also be pushing for additional acres this spring. However, the increased volatility could lead to big price moves either direction.



Soybean futures are called 2 to 4 cents higher. Overnight trade was 2 1/4 to 4 1/2 cents higher. The sharp rally in corn is expected to be supportive, but bearish soybean fundamentals should limit gains relative to corn. Ending stocks are expected to be record large this marketing year. New-crop will find some support from ideas of acreage shifting from soybeans to corn this spring.



Wheat futures are called mostly higher. Overnight CBOT trade was 2 to 3 3/4 cents higher and the KCBT was 2 cents lower to 3 3/4 cents higher.
The big jump in corn supported prices on Friday, but gains are expected to be limited this morning following the neutral to bearish projections by the USDA. Sluggish export demand and the increase in winter wheat acreage this year will limit buying interest. However, corn trade and increased volatility will remain influential for wheat.



Cattle futures are called lower on the open. Rising corn prices are expected to weigh on front end futures as rising prices encourage early marketing. However, rising boxed beef values and ideas of less cattle feeding due to rising feed costs could provide some support for deferred contracts.



Lean hog futures are called steady to higher. The jump in cash prices on Monday and ideas of shrinking hog numbers due to high feed costs will be supportive. Hog producers will have a hard time turning profits if corn prices hold current levels.