Corn futures are called 2 to 3 cents lower. Overnight trade was 1 1/2 to 3 cents lower. We look for the market to retrace some of yesterday's short-covering gains. We expect increased cash movement following yesterday's gains to weigh on futures.

Soybean futures are called 7 to 9 cents lower following overnight trade that closed that way. Some profit-taking is expected on the open following yesterday strong gains. Weather conditions remain hot and dry in southern Brazil and parts of Argentina, but even with weather problems South America is expected to produce a record crop.

Wheat futures are called 2 to 3 cents lower. Overnight trade was 1/2 to 2 3/4 cents lower. There is concern about the competitiveness of U.S. wheat on the world market. The dollar has declined sharply, which is positive for U.S. exports. However, some firming of the dollar and profit-taking is expected to weigh on futures this morning.

Cattle futures are called steady to mixed. Showlists remain relatively tight, but beef demand has been sluggish. Packer margins are negative and boxed beef prices were 90 cents lower to 28 cents higher yesterday. Mixed trade is likely until cash prospects are more defined.

Lean hog futures are called steady to higher. Cash markets are expected to be firm with packers benefiting from the 54 cent jump in cutouts. The monthly Cold Storage report released yesterday showed smaller than expected supplies of total pork, pork bellies and ham.