Corn futures are called unchanged to 2 cents higher. Overnight trade at 6:45 am CT was unchanged to 2 1/4 cents higher. Prices bounced back overnight from Thursday’s selloff. Pre-report positioning ahead of Monday’s USDA report should lend support. Average trade estimates for yield of 148.8 bushels compare to USDA’s August estimate of 153 bushels, and the average trade production estimate of 12.5 billion bushels compares to USDA’s August estimate of 12.914 billion.   

Soybean futures are called 4 to 6 cents higher. Overnight trade at 6:45 am CT was 5 3/4 to 6 1/4 cents higher. Support stems from expectations for a cut in U.S. soybean production and ending stocks in Monday’s USDA report. On Thursday the market was pressured by news of more economic concerns about Europe where the European Central Bank President Trichet warned of increased worries about slowing economic growth and “intensified downside risks.” The dollar index rallied toward its highest levels of the past five months. There are concerns that export demand for U.S. beans is being switched to Brazil during what is usually the busy season for the U.S.   

Wheat futures are called 2 cents lower to 2 cents higher. Overnight trade at 6:45 am CT was 1 1/4 cents lower to 4 1/4 cents higher at the CBOT, 2 3/4 cents lower at the KCBT and 2 1/4 cents lower at the MGE. Pre-report positioning ahead of Monday’s USDA reports has the market mixed. Sluggish export demand and the bearish global supply/demand outlook will weigh on prices. Increased competition for exports is coming from the Black Sea region. Egypt bought wheat from Russia and Kazakhstan this week, but none from the U.S.

Cattle futures are called steady to higher. Cash cattle trade is expected to pick up as packers are short bought and have to fill weekly slaughter needs and will likely bid up prices. Beef cutouts were marginally lower on Thursday, with choice down 56 cents and select down 34 cents. Concerns about the U.S. economy and uncertainty about post Labor Day beef demand will weigh on futures.

Lean hog futures are called steady to higher. Strength in pork cutout values and the cash market will lend support to the futures market. Packer margins are good, which is encouraging more slaughter and greater demand in the cash market. A big Saturday slaughter is planned to help make up for the plant closures on Monday due to the Labor Day holiday.

Cotton futures are trading lower this morning. Prices have slipped on profit taking from the strong rally the past two sessions.  Strong support has come from concerns that floods and continued rain in Pakistan is causing an increasing amount of damage to the crop.  As of 6:45 a.m. CT December is down 58 points at 113.05 cents.