Corn futures are called 3 to 5 cents lower. USDA reports out this morning were fairly neutral, but expected weakness in soybeans and wheat are expected to pull prices lower. USDA raised corn ending stocks slightly from last month to 848 million bushels, up 5 million bushels from the previous month. The potential for surprises is much higher next month when USDA issues production as well as December 1 grains stocks reports.

Soybean futures are called 5 to 10 cents lower. USDA raised its soybean ending stocks estimate to 230 million bushels, up 35 million from last month. This was a larger increase than the trade was expecting. USDA cut exports by 25 million bushels and lowered the soybean crush estimate by 10 million bushels.

Wheat futures are called 15 to 20 cents lower on the open. USDA’s Supply/Demand report was bearish for the market. For the U.S., ending stocks were raised 50 million bushels to 878 million, which was above the high end of trade expectations. USDA cut exports by 50 million bushels. World numbers were also bearish as USDA raised its world production number to a record 689 million tonnes, up 6% from the previous crop. Global ending wheat stocks were raised 5.9 million tonnes from last month.

Cattle futures are called lower on the open. Sharply lower beef prices and very poor packer processing margins are expected to weigh on futures trade and the cash market. Choice cutouts were down $4.44 and select cuts were down $2.09 on Thursday. Boxed beef supplies are reportedly heavy, indicating sluggish demand.

Lean hog futures are called steady to higher. Short-covering from the strong losses on Thursday and the $1.21 increase in pork cutout values are expected to support the market. Some firm cash bids are expected to develop for packer needs next week. However, gains will be limited by technical weakness and weakness in the dollar index overnight, which is a positive factor for pork exports.

Cotton futures are trading strongly lower this morning. In the Supply/Demand report, USDA cut the production estimate due to lower yields and lower ending stocks to 3.5 million bales from 3.8 million last month. However, this was largely expected by traders and futures have turned lower with expected spillover from other crop markets.