Corn futures are called 15 to 20 cents higher. USDA’s Supply/Demand estimates were bullish for corn. USDA lowered its production estimate by 305 million bushels due to smaller acreage and ending 2011/12 ending stocks were pegged at 695 million bushels, down 205 million from May. The new-crop ending stocks projection was down nearly 100 million bushels from the average pre-report trade estimate.

Soybean futures are called steady to 5 cents lower. The Supply/Demand estimates were bearish for soybeans, but strength in corn is expected to limit losses. USDA left yield, acreage and production estimates unchanged from May. USDA raised new-crop ending stocks to 190 million bushels from 160 million in May. Old-crop stocks were raised 10 million bushels and new-crop exports were lowered 20 million bushels. USDA raised their Brazilian soybean crop estimate to 74.5 million tonnes from 73.0 million in May.

Wheat futures are called 5 to 10 cents lower. Supply/Demand estimates for the U.S. and globally were bearish, but losses are expected to limited by strength in corn. USDA is forecasting U.S. 2011/12 wheat ending stocks at 687 million bushels, down 15 million from May but above trade expectations. Wheat production numbers were on the high side of expectations as all wheat production was about 50 million bushels above trade expectations at 2.058 billion bushels. All winter wheat was about 60 million bushels above expectations at 1.450 billion bushels. USDA raised hard and soft red winter wheat estimates. The world wheat ending stocks estimate for 2011/12 was raised by 3 million tonnes to 184.3 million.

Cattle futures are called steady to higher. Cash trade developed at $1-$2 higher live and $3-$4 higher dressed. This should help futures trade mostly higher this morning although gains will be limited by further losses in boxed beef prices. Choice cutouts were down $1.26 on Wednesday. Packer margins remain favorable, but they have tightened recently.

Lean hog futures are called higher on the open. Cash trade stabilized on Wednesday and is called steady to firm today. Pork cutouts were up 47 cents. Talk that export business has improved recently helped fuel the rally yesterday. However, gains could be limited by concern about domestic pork demand and on profit-taking from the gains posted on Wednesday.

Cotton futures are trading higher this morning. USDA lowered its production figure to 17 million bales from 18 million in May. Exports were lowered 500,000 bales and beginning stocks were lowered 500,000 bales, leaving 2011/12 ending stocks unchanged from last month at 2.50 million bales. At 7:45 am CT, July was 195 points higher and December was 202 points higher.