Corn futures are called 5 to 7 cents higher. USDA cut the corn crop estimate by 123 million bushels while the trade was looking for around a 50 million bushel decline. USDA lowered ending stocks by 23 million bushels. Traders were looking for a bigger decline, but USDA lowered feed use by 100 million bushels. Gains will be limited by bearish soybean and wheat reports as well as outside market pressure. Strength in the dollar and weakness in the stock market are expected to limit buying interest.
Soybean futures are called 10 cents lower. USDA lowered its soybean production estimate by 14 million bushels, which was near trade expectations. But ending stocks were increased 35 million bushels, which beat trade expectations for around a 20 million bushel jump. USDA cut U.S. exports by 50 million bushels. In addition, USDA raised the Brazilian soybean crop estimate to 75 million tones. Outside markets were bearish overnight and are expected to keep pressure on prices this morning. Renewed European debt fears are weighing on Dow Jones futures while the dollar index is strongly higher.
Wheat futures are called 10 to 15 cents lower. USDA cut the spring wheat crop by 9 million bushels, which was less than expected. Wheat ending stocks were lowered that amount while traders were looking for a larger decline. Outside markets were bearish overnight as the dollar index was up strongly while Dow Jones futures were strongly lower. However, losses could be limited by calls for firm corn prices this morning.
Cattle futures are called higher. Boxed beef prices have turned higher this week. While packer margins remain poor, short-bought packers are expected to raise bids again this week. Slower slaughter seems to have worked to limit beef supplies and push prices higher. Outside market pressure could limit gains as the stock market is expected to be strongly lower while the dollar index was up strongly overnight.
Lean hog futures are called lower on the open. Pork cutouts were down another $1.52 on Tuesday and the weak tone in the cash market is expected to continue. With several plants closed on Friday for Veteran’s Day, demand for hogs will be limited. Outside markets could further pressure lean hog futures as well. However, technically the market is overnight and due for a bounce.
Cotton futures are trading lower this morning. The USDA reports were neutral for cotton, but outside markets are bearish. The collapse in Italian bonds is supporting the U.S. dollar and the stock market is expected to open strongly lower this morning.