Corn futures are called 2 to 3 cents lower. Overnight trade was 2 1/4 to 3 1/4 cents lower. Despite USDA lowering the corn ending stocks estimate on Friday, old-crop supplies remain large. Recent rainfall in the Midwest has helped replenish soil moisture, although amounts in the western Corn Belt were on the light side.



Soybean futures are called 3 to 4 cents lower. Overnight trade was 3 3/4 to 4 1/4 cents lower. Futures were higher on Friday despite a bearish USDA supply/demand report. However, fundamentals are mostly bearish as USDA lowered exports and raised ending stocks 10 million bushels to what would be a new record high of 565 million bushels. Crop prospects for 2006 have improved as many dry areas in the Midwest have received rain.



Wheat futures are called 3 to 5 cents lower. Overnight CBOT trade was 5 1/2 to 7 1/2 cents lower. Profit-taking is expected after the KCBT and MGE hit new highs on Friday. Profit-taking was seen at the CBOT on Friday and is expected to continue on the open. Losses at the KCBT should be limited by continued warm and mostly dry weather in the Plains.



Cattle futures are called lower on the open. The inconclusive BSE test reported this weekend by the USDA will weigh on the market. USDA is doing further testing on the animal in question. Losses may be limited by traders waiting for conclusive evidence, but regardless of the test results fundamentals remain bearish.



Lean hog futures are called steady to lower. Technical weakness on the charts and expectations for lower cash trade will weigh on futures this morning. Packers will try to protect margins in the face of declining pork prices. Pork cutouts were $1.00 lower on Friday.