Corn futures are called 3 to 5 cents lower. Overnight trade at 6:45 am CT was 3 to 5 1/2 cents lower. The market is easing lower after the strong rally on Thursday. Fundamentals remain mostly bearish with USDA lowering their production estimate and tightening the ending stocks projection for 2011/12 to the very tight level of only 675 million bushels. Weather forecasts and outside markets will be watched for direction. Forecasts call for favorable growing conditions in the Corn Belt next week. Strength in the dollar and weakness in crude oil helped pressure futures overnight.

Soybean futures are called 9 to 10 cents lower. Overnight trade at 6:45 am CT was 8 3/4 to 10 cents lower. Futures are being pressured by USDA’s increased ending stocks projections in the Supply/Demand report on Thursday and outside market pressure. USDA raised 2011/12 ending stocks by 30 million bushels due in part to decreased exports. Demand projections from China were scaled back and Brazil’s soybean crop estimate was raised. Strength in the dollar and weakness in crude oil are helping to pressure futures trade.

Wheat futures are called 5 to 10 cents lower. Overnight trade at 6:45 am CT was 4 3/4 to 11 1/4 cents lower at the CBOT, 6 1/4 to 6 3/4 cents lower at the KCBT and 8 1/2 cents lower at the MGE. USDA raised wheat production estimates despite the poor weather in the southern and western Plains. But losses could be limited by poor harvest reports that are coming from those areas. USDA’s revisions for global wheat stocks were bearish as ending stocks were raised 3 million tonnes. Conditions for wheat production have recently improved. Outside markets and weakness in corn will also weigh on wheat futures. Strength in the dollar is a bearish factor for exports.

Cattle futures are called steady to mixed. Choppy trade is expected ahead of the weekend. Cash trade was firm this week. Packer margins remain strong despite the erosion in beef prices this week. Boxed beef prices were down another $1.57 on Thursday. The Supply/Demand report released on Thursday morning was supportive as USDA raised their export forecast.

Lean hog futures are called higher on the open. Cash prices were firm on Thursday and pork cutouts jumped $1.83. Improved packer margins and ideas strong export demand should help futures continue the rally on Thursday. USDA raised their export forecast in the Supply/Demand report that was released on Thursday morning.

Cotton futures are trading lower this morning. Profit-taking from the strong gains on Thursday are weighing on futures this morning. Outside markets are slightly bearish as the dollar is higher while energy markets are mostly lower. At 6:30 am CT, July was 35 points lower and December was 119 points lower.