Corn futures are trading lower this morning. Futures are trading quietly between 3 to 4 cents lower on position squaring. USDA is set to release its stocks report this morning at 7:30 am. The average of trade estimates is pegged at 1.113 billion bushels (an eight year low), down from 1.128 billion bushels a year ago.

Soybean futures are trading slightly higher this morning. Nearby contracts are trading higher although stuck in a narrow trading range this morning. Prices remains under pressure as traders square positions ahead of a key USDA report. The report is scheduled to be released at 7:30am. The average of trade estimates is pegged at 131 million bushels, little changed from September supply and demand report estimate for 2011/12 ending stocks

Wheat futures are trading lower this morning. Wheat futures are following corn futures lower at this hour. The market is being pressured by pre position squaring and lack of demand for U.S. wheat. The trade is awaiting the release of USDA’s small grain summary this morning. Analysts expect the report to show 2012 wheat production at 2.267 billion bushels, down from USDA’s previous estimate of 2.268 billion bushels.

Live cattle futures are called to open lower this morning. The market is expected to open pit trade on the defensive this morning on lower cash expectations and weak demand for beef. Beef cut outs closed substantially lower on Thursday along with very disappointing export sales numbers. However, traders are optimistic that the market is set for a rebound.

Lean hog futures are called to open mixed this morning. Prices are expected to open on under pressure on expectations for a somewhat bearish USDA report. Analysts are predicting total hogs in the U.S. to be up 0.7%, the breeding herd down 0.3% and marketings up 0.8%. However prices are expected to see some support from improvement in the carcass value and appreciating cash prices.

Cotton futures are trading mostly mixed this morning. Cotton futures are higher this morning on a combination of short covering and the lower dollar index. Due to lack of supportive fundamentals, traders expect prices to trade on both sides of the market at any sign of bearish news.