Corn futures are called 1 cent higher. Overnight trade was 3/4 to 1 1/2 cents higher. The market bounced slightly overnight despite the normal tendency for seasonal weakness as we head into harvest. Funds remain long, but with the strong demand and talk of USDA lowering their production estimate in September they have reason to hold onto current positions.



Soybean futures are called 2 to 3 cents higher. Overnight trade was 3 to 3 1/4 cents higher. We look for some choppy trade ahead of the USDA Production report due out September 12. Private estimates are on the rise as crop condition ratings continue to improve slightly. Last week, conditions were pegged at 59% good to excellent. That was steady with the previous week, but 1% moved from good to excellent.



Wheat futures are called mixed on the open. Overnight CBOT trade was 1/2 cent higher to 1 1/2 cents lower and the KCBT was unchanged. The market rallied early on Tuesday, but could not hold onto gains. It appears the market could consolidate for a few days before moving higher again. The futures market remains technically strong following last week's rally despite yesterday's weak close.



Cattle futures are called steady to higher. Contract highs continue to be set as the cash market rises. Bullish momentum in the futures market and ideas of firm cash trade again this week will be supportive. Choice cuts were $1.77 higher and Select $2.90 higher yesterday. However, given the recent strength the market is vulnerable to a round of profit-taking at any time.



Lean hog futures are called steady to higher. Futures continue to push to new highs in the hog pit and bullish momentum and supportive cash fundamentals will be supportive. Packers are being encouraged to have aggressive slaughter schedules due to favorable margins. Pork cutouts were up 45 cents yesterday. Cash bids are expected to be firm again today.