Corn futures are called steady on the open. The Supply/Demand report was slightly bearish as USDA left ending stocks unchanged at 801 million bushels while traders were looking for a slight decline. But the slightly bearish report will be countered by expected strength in soybeans and wheat and some outside market support. Crude oil is trading slightly higher this morning. 

Soybean futures are called 5 to 10 cents higher. Futures were higher overnight and made a new high for the move. The Supply/Demand report was neutral to slightly bearish. USDA left ending stocks unchanged at 275 million bushels while traders were expecting a decline. However, USDA did cut its estimate for Brazil and Argentina’s soybean crops for the third consecutive month. Outside markets are mixed. Strength in the dollar index is being countered by light strength in crude oil futures and a neutral unemployment number.

Wheat futures are called 5 to 10 cents higher. Supply/Demand estimates were supportive for wheat. USDA lowered U.S. ending stocks to 825 million bushels from 845 million last month. U.S. wheat exports were raised by 25 million bushels to 1 million bushels. Global wheat ending stocks were lowered 3.5 million metric tons thanks to increased global wheat consumption.

Cattle futures are called steady to mixed. Futures posted a short-covering rally on Thursday. But buying interest will be limited today by losses in boxed beef prices on Thursday. Cash trade eased this week and with the $1.73 decline in choice beef prices yesterday, further weakness could be seen next week. Outside markets were supportive on Thursday, but the dollar index was trading higher overnight.

Lean hog futures are called lower on the open. The weak tone in the cash market and pork cutout values is expected to weigh on futures. Pork cutout prices have struggled to rally as is typical seasonally. There is concern about soft domestic and export demand. However, losses should be limited by ideas that market ready hog supplies will tighten over the next several weeks.

Cotton futures are trading lower this morning. USDA raised its global production estimates and lower global cotton consumption forecasts. U.S. ending stocks are now pegged at 3.9 million bales compared to 3.8 million bales last month.