Corn futures are called 25 to 30 cents lower. USDA's Acreage and Stocks reports were quite bearish for corn. USDA estimated acreage at 92.3 million acres versus trade expectations of 90.8 million. The number is also slightly above planting intentions of 92..2 million acres. Quarterly stocks as of June 1 were pegged at 3.670 billion bushels, up nearly 370 million from trade expectations. Look for the market to open strongly lower with limit weakness possible during the session.
Soybean futures are called 25 cents lower. The USDA reports were mixed for soybeans. Acreage was bullish at 75.2 million acres compared to trade expectations of 76.5 million. However, June 1 stocks were bearish at 619 million bushels versus trade expectations of just under 600 million. Despite the bearish acreage number for soybeans, weakness in corn and the larger-than-expected stocks number are expected to weigh on futures.
Wheat futures are called 15 to 20 cents lower. USDA acreage figures was slightly bullish, but the stocks report was bearish. All wheat acreage was estimated at 56.4 million acres compared to trade estimates of 56.7 million. Spring wheat acreage was estimated at 13.6 million versus trade expectations of 13.4 million, but durum was pegged at 1.7 million acres versus expectations of 2.0 million. Wheat stocks to end the 2010/11 marketing year were 861 million bushels, about 35 million above trade expectations. While USDA reports were mixed, the bearish influence from corn is expected to pressure futures trade.
Cattle futures are called steady to mixed until the cash market develops. Cash trade is expected to be near steady with the $112 last week. Beef cutouts have moved moderately lower and showlists are larger this week. Choppy trade is likely through the end of the week as traders even positions ahead of the holiday weekend. The market will be watching beef clearance over the weekend for direction next week. Expected weakness is likely to pressure deferred contracts.
Lean hogs futures are called steady to mixed. Light cash trade is expected as many plants will have reduced slaughter schedules through the July Fourth holiday. Futures discount to the cash market could be supportive. Deferred contracts will likely be pressured by corn, which isexpected to open sharply lower this morning.