Corn futures are called 2 to 3 cents lower. Overnight trade was 1 1/2 to 3 cents lower. Warm and mostly dry weather is beneficial to the crop following the previously cool and wet weather. Strength in the dollar overnight will be a bearish factor although light strength in crude oil will be supportive. Weekly export sales will be released this morning and with the marketing year to end August 31, shipments need to average 41 million bushels to reach USDA's export forecast.



Soybean futures are called steady to 3 cents higher. The July contract was up 3 cents overnight while November was unchanged. Tight old-crop stocks remain a bullish factor for old-crop. However, gains may be limited by strength in the dollar overnight. Traders will be watching the weekly export sales report to see in particular news on Chinese demand. Shipments need to average 13.5 million bushels to reach USDA's export forecast. Generally favorable crop weather in the Midwest for crop development will limit gains.



Wheat futures are called 4 to 5 cents lower. Overnight CBOT trade was 1 1/4 to 5 cents lower and the KCBT was 4 to 4 1/2 cents lower. Favorable harvest weather in the Plains is expected to keep pressure on the market. Export demand has been sluggish and the weekly export sales report is expected to indicate that this morning. Although early in the marketing year, sales need to average above 15 million bushels to reach USDA's export forecast. The recent uptick in the dollar index is negative for U.S. wheat export prospects as competition for sales remain strong.



Cattle futures are called steady to mixed. Light cash trade developed on Wednesday at generally $1 lower on a live and dressed basis compared to last week. Boxed beef prices were mixed on Wednesday, with choice cutouts down 18 cents and select cuts up 82 cents. The recent sharp drop in lean hog futures and pork cutouts along with generally sluggish beef demand will continue to be a weight on the market.



Lean hog futures are called steady to mixed. Some consolidation trade is expected after the big drop in futures on Wednesday. Pork cutouts were down another $1.19 on Wednesday. Some short-covering is possible as futures are at a discount to cash and as traders even positions ahead of the quarterly Hogs and Pigs report due out Friday afternoon.