Corn futures are trading slightly lower this morning. Futures continue to trade slightly below unchanged before the 7:30 am release of USDA’s October WASDE Report. The report is expected to show a significant decline in corn production. Pre report trade estimates peg the average production of the 2012 corn crop at 10.601 billion bushels, 126 million bushels below the September estimate. The average of trade estimates pegged ending stocks at 648 million bushels, 85 million bushels below the September estimate.
Soybean futures are trading moderately higher this morning. Futures rebounded overnight and now await the release of the October WASDE estimates. The trade is expecting to see an increase in production and yield estimates. Pre report trade estimates forecast soybean production at 2.759 billion bushels with an average yield of 37.006 bushels per acre. Both estimates are above USDA’s September forecast. Ending stocks are also projected higher at 134 million bushels versus 115 million bushels estimated in September.
Wheat futures are trading slightly lower this morning. Wheat futures are lower this morning on profit taking and position squaring ahead of this morning’s WASDE estimates. Global supplies worries have buoyed prices the last three sessions and the trade is anticipating a decline in global ending stocks due to poor weather conditions in Australia and Russia. Pre report trade estimates peg global ending stocks (average) at 172.813 million tonnes, 3.897 million tonnes below USDA’s September estimate of 176.710 million tonnes. The trade is also expected U.S. global stocks to decline below the September estimate of 698 million bushels to 630 million bushels.
Live cattle futures are called to open lower this morning. Wholesale beef prices closed mixed on Wednesday and is expected to negatively affect cattle futures. As the end of the week approaches cattle trade has yet to develop and trader optimism is beginning to wane. Look for uncertainty in the cash market the pressure futures this morning.
Lean hog futures are called to open mixed this morning. Hog futures are expected to open under slight pressure as traders book profits after the market posted strong gains on yesterday. Cash prices are called steady at best with the possibility for lower bids, but strength in the pork carcass value should underpin prices.
Cotton futures are trading lower this morning. USDA’s WASDE report is scheduled to be released this morning at 7:30 am CDT and results are expected to be mixed for cotton. The trade anticipates 2012/13 production output to average 17.0 million bales, down 100,000 bales from the September estimate. The trade is also expecting USDA to lower ending stocks to 5.0 million bales.