Corn futures are expected to open 2 to 4 cents higher. The DTN National Corn Index fell below $3 for the first time in 8 months, and farmers are not likely to be willing to sell at such low prices. However, if the good growing conditions across the Midwest continue, farmers will likely have a large crop hanging over their heads to move some corn. Commercial buying interest is expected to provide some support. September is 2 1/2 cents higher at $3.28 and December is 1 1/4 cents higher at $3.37.

Soybean futures are expected to open 2 cents lower to 1 cent higher. Futures rallied early in the overnight session, but this fizzled and gains were erased. Talk that China plans to open up their soybean reserves is also bearish, particularly given the lower Baltic Dry Freight index. August futures are 2 1/2 cents lower at $10.51 and November is 1 1/4 cents higher at $8.96 1/4.

Wheat futures are expected to open 1 to 3 cents higher. Prices are expected to continue to recover from recent lows, with some support coming from further delays in harvest due to thunderstorms. However, global supplies of wheat remain large, and Friday's supply/demand report is expected to show increased stocks in the U.S. and world markets. CBOT September is 2 1/2 cents higher at $5.15, KCBT September is 1 3/4 cents higher at $5.45 3/4 and MGE September is 1 cent higher at $6.07 3/4.

Cattle futures are called steady to lower. With supplies of cattle still high and chain speed being slowed, there is a bit of a bottleneck in the cash cattle markets. High unemployment in the U.S. has led to concerns about faltering beef demand, and packers are trying to improve margins. Also bearish is news that slaughter capacity in Brazil, the world's largest beef exporter, has been raised 25 percent.

Lean hog futures are called mixed. The nearby August contract will be weighed down by the Goldman roll. Although hog supply reductions are expected, they are not estimated to be enough to raise profits for 2009. A supportive factor is talk that Canada is working toward reducing their sows in production at a greater rate than last year.