Corn futures are called steady to 1 cent higher. Overnight trade was 1/4 to 1/2 of a cent higher. A small rebound in Dow Jones futures and some weakness in the dollar overnight will provide light support to the corn market. However, gains will be limited by the warmer and drier weather in the Corn Belt this week that should be beneficial for most of the crop. Crop condition ratings held at 70% good to excellent last week, although 3% moved up from good to excellent.



Soybean futures are called 13 to 15 cents higher. Overnight trade was 12 1/4 to 16 1/4 cents higher. The market is expected to bounce this morning from recent losses. Light support will come from outside markets and the Crop Progress report that showed continued planting and emergence delays, especially in IL, MO, KY and TN. However, the rally is expected to limited by warmer and drier weather in the Midwest this week that should benefit crop conditions and late planting/emergence. Crop condition ratings improved 1% last week in the good to excellent categories to 67%.



Wheat futures are called 3 to 4 cents higher. Overnight CBOT trade was 3 1/4 to 3 3/4 cents higher and the KCBT was 4 to 4 1/2 cents higher. Weakness in the dollar overnight should help the wheat market make a small recovery rally from recent losses. However, gains will be limited by the warmer and drier weather in the Plains that will benefit crop maturity and harvest progress. Currently, harvest is running well below normal at 20% complete compared to the 5-year average of 31%. Kansas was only 5% harvested versus 31% normally.



Cattle futures are called steady to higher. Cash cattle trade is not expected to develop until later in the week, but the recent strength in futures could help feedlots hold out for steady or even slightly higher bids. However, showlists are generally larger this week and packers will not need as many cattle next week due to the July fourth holiday.



Lean hog futures are called steady to mixed. Cash trade has been steady to firm, although poor packer margins will likely force cash prices lower later this week or packers will slow slaughter as hog numbers tighten seasonally. The Cold Storage report showed total pork in storage down about 7 million pounds from trade expectations while pork belly stocks were up about 3 million pounds.