Corn futures are called 3 to 4 cents higher. Overnight trade was 2 1/2 to 3 3/4 cents higher. It appears that the contra-seasonal rally will continue this morning. Speculative buying is expected following the gains overnight and spillover strength from wheat. Harvest progress should have been strong over the weekend, but forecasts for this week show snow in the upper Midwest that would slow activity.



Soybean futures are called steady to 1 cent higher. Overnight trade was 1/4 cent lower to 1 cent higher. Fundamentals remain bearish, but we look for some light spillover support from corn and wheat on the open. Harvest pressure from this year's large crop should limit gains as weekend harvest progress was good. However, weather forecasts show precipitation and much cooler temperatures this week with snow forecasted in the upper Midwest.



Wheat futures are called sharply higher. Front-end contracts overnight at the CBOT were 17 1/4 to 20 cents higher and at the KCBT 9 to 13 1/4 cents higher. Strong speculative buying is expected on the open. Wheat markets remain volatile as tight world supply/demand fundamentals are offering underlying support. Futures are expected to shoot higher despite relatively sluggish U.S. wheat export sales and forecasts for rain in the Plains that will help the outlook for hard red winter wheat.



Cattle futures are called steady to lower. Cash trade developed late on Friday at mostly lower prices. Nebraska trade looks like it was mostly $140 dresssed while the southern Plains were $90-$91. Packers appear to be slowing slaughter in an effort to pull margins out of the red. Sluggish beef prices aren't helping with boxed beef down 24 to 41 cents on Friday.



Lean hog futures are called steady to lower. Spillover selling from Friday's sell-off and ideas of weaker cash bids this week are expected to weigh on futures. Packer margins have turned negative and unless pork cutouts can turn significantly higher, there is not much optimism that cash can move higher.