Corn futures are called 4 to 5 cents lower. Overnight trade was 4 1/4 to 5 cents lower. Light pressure is again expected to come from outside markets and spillover weakness from soybeans. The dollar index was higher overnight and Dow Jones Industrial Average futures lower. Crude oil was slightly higher, but is threatening to drop below $40 again. Export sales have perked up recently, but shipments last week of 25.3 million bushels were about 10 million below the pace needed to reach USDA's export forecast.



Soybean futures are called 11 to 12 cents lower. Overnight trade was 11 to 11 3/4 cents lower. Rainfall in some key growing areas of Argentina will put the market on the defensive this morning. Non-commercial selling is also likely with the recent weakness in the stock market and drop in crude oil prices. However, losses may be limited by slightly higher crude oil trade overnight and the downward revision by a private firm for Brazil's soybean crop.



Wheat futures are called 3 to 4 cents lower. Overnight CBOT trade was 3 3/4 to 5 3/4 cents lower and the KCBT was 2 to 2 3/4 cents lower. Spillover pressure from corn and soybeans and strength in the dollar index overnight will weigh on the market. Concern about the economy will continue to push some noncommercial selling. But losses should be limited by concern about dry conditions in the U.S. southern Plains. In addition, drought in much of China's wheat belt is worsening.



Cattle futures are called steady to mixed. The market was supported by the bullish Cattle Inventory report on Monday. But gains are expected to be limited by boxed beef prices closing lower despite strong midday gains yesterday. So demand concerns will limit follow-through buying as the economy continues to struggle.



Lean hog futures are called steady to mixed. Short-covering is expected to help limit losses following the weakness yesterday. Packer margins remain poor and pork cutouts were a little lower again yesterday. Concern about the economy and pork demand will limit gains. In addition, strength in the dollar index is a bearish factor for pork exports.