Corn futures are called steady to mixed. Overnight trade at 6:45 am CT was 1/4 to 1 cent higher. Consolidation trade following the limit losses on Thursday has led to choppy trade overnight. USDA reports were bearish as USDA’s ending stocks estimate was about 100 million bushels above expectations. However, despite the bearish reaction to the report, U.S. and global stocks are expected to remain historically low.

Soybean futures are called 2 to 3 cents higher. Overnight trade at 6:45 am CT was 2 1/4 to 2 1/2 cents higher. The market has been able to rebound overnight on short-covering from losses on Thursday. While the USDA reports were net bearish, there was some supportive news. USDA lowered its South American production estimate and reduced its forecast for global ending stocks. Crop stress in the near-term could be limited by some rainfall in southern Brazil and Argentina, but limited subsoil moisture levels will make additional rainfall important to keep production potential from declining further.

Wheat futures are called 2 to 5 cents higher. Overnight trade at 6:45 am CT was 3 1/4 to 5 cents higher at the CBOT, 2 1/2 to 2 3/4 cents higher at the KCBT and 1/2 to 3/4 of a cent higher at the MGE. Light technical buying and short-covering is supporting the market following the weakness on Thursday. But fundamentals remain bearish. USDA’s winter wheat seedings estimate was well above trade expectations and global ending stocks were raised by 1.5 million tonnes. Strength in the dollar index overnight will also limit the recovery rally this morning.

Cattle futures are called steady to mixed as traders wait for the cash market to develop for direction. Sluggish beef demand and declining boxed beef prices will limit strength. However, relatively tight supplies of market ready cattle supplies and short-bought packers should limit any weakness.

Lean hog futures are called higher this morning. The tone in the cash market remains steady to firm and the 99 cent jump in pork cutouts will give packers some incentive to maintain slaughter schedules. Weakness in corn was bearish for deferred contracts on Thursday, but corn prices were able to stabilize in overnight trade.

Cotton futures are trading slightly lower this morning. USDA estimates were bearish on Thursday, but losses are being limited by consolidation type trade. At 6:35 am CT, March cotton was 14 points lower and July was 18 points lower.