Corn: 7 to 9 cents higher; followthrough buying, USDA reports.
Wheat: 4 to 6 cents higher; spillover from neighboring pits.
Soybeans: 5 to 7 cents higher; still digesting USDA data.
Meal: $1 to $2 higher; spillover from beans.
Soyoil: Steady to 20 points lower; spillover from crude oil, spreading.

  Futures saw followthrough buying in overnight trade, as the market is
still digesting yesterday's USDA reports, in which USDA cut corn, soybean and wheat carryover from last month. Traders now have the daunting task of finding a price that rations remaining old-crop supplies and increases 2011 acreage.

  The dollar is sharply lower, which is also positive for the grain market this morning. Gold futures are higher, but crude oil is marginally lower.
This morning's Weekly Export Sales Report showed corn and soybean sales within expectations, while wheat sales failed to meet expectations. Traders will be expecting higher tallies next week given a recent pickup in business. USDA announced a daily corn sale of 116,000 MT to unknown destinations for the current marketing year.

** OPENING LIVESTOCK CALLS **
Live cattle: Steady to higher; expecting higher cash cattle.
Feeder cattle: Steady to higher; spillover from live cattle.
Lean hogs: Steady to weaker; profit-taking, narrowing premium to cash.

  Cattle traders are still waiting on cash trade to begin, but
expectations are for higher prices given the surge in futures, strength in the boxed beef market and stress on feedlots. Beef movement has picked up at higher prices this week to reflect strong consumer demand. Technicals have also improved this week, as bullish momentum feeds on itself to result in new all-time highs in the front-month live cattle and feeder contracts on the weekly and monthly continuation charts.
Additional bullish fuel is coming from flooding in Australia, as
industry sources say it will take months for the country to restore its
export market.

  Following yesterday's sharp gains, lean hog futures are expected to see some profit-taking, although downside risk should be limited given
improved technicals. The cash hog market hasn't lived up to earlier
expectations that bids would firm throughout the week due to improved
profit margins, which is expected to result in narrowing of the premium
nearby contracts hold to the cash index. Demand for hogs is now expected to be limited as this week's needs have been secured and a lighter kill is planned on Martin Luther King Jr. Day.

*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.