** OPENING GRAIN CALLS **
Corn: 7 to 9 cents lower; spillover pressure, profit-taking.
Wheat: 10 to 13 cents lower; profit-taking, spillover from beans.
Soybeans: 10 to 13 cents lower; China hikes bank reserve requirements.
Meal: $3 to $4 lower; spillover from soybeans.
Soyoil: 70 to 80 points lower; spillover from soybeans.

  Soybean futures posted sharp losses overnight on news China has once
again raised its reserve requirements by 50 basis points, putting that
level now at 20%. China's previous efforts have done little to calm
inflation, and they are also rumored to be mulling a plan to lower import duties on a host of consumable goods, including soybeans and soyoil, due to supply shortages. Traders used the banking news as a reason to take profits overnight, but if the country lowers its import tax, it would likely result in a buying surge.
USDA announced export sales of 156,100 metric tons (MT) of corn to
Mexico, with 133,800 MT for the current marketing year and 22,300 MT for 2011-12. Mexico has increased its purchases this week in the wake of serious freeze damage to its corn crop. The purchase should remind the market of the need for price rationing and limit pressure to profit-taking. Additionally, USDA announced a 100,000 MT HRW wheat sale to Turkey, but export sources say a total of 300,000 MT was purchased this week and has already been factored into prices.

** OPENING LIVESTOCK CALLS **
Live cattle: Slightly higher; expecting higher cash trade.
Feeder cattle: Slightly higher; support from grain market weakness.
Lean hogs: Higher; Korea increases TRQ on pork belly imports.

  Lean hog futures are called to open higher based on positive demand
news. South Korea says it will increase its tariff rate quote (TRQ) for
pork belly imports given tighten domestic stocks due to the country's
massive foot-and-mouth disease outbreak. Meanwhile, the cash hog market is expected to be steady to weaker into early next week amid light demand for hogs. Packers say supplies are booked well into next week. This could limit upside potential, although traders expect strong export demand to limit overall pressure in the cash market.
Cattle futures are called to open higher, with traders evening positions ahead of this afternoon's Cattle on Feed Report and anticipating higher cash cattle trade. Strength in futures has traders looking for $109 to $110 cash trade out of the Southern Plains by this afternoon.
Followthrough buying in April live cattle this morning would confirm
yesterday's bullish reversal, making next resistance the contract high of $116.30.