Corn futures are called steady on the open. USDA reports were neutral for the market. USDA raised the corn export number by 50 million bushels and cut ending stocks by 45 million, but this was right on trade expectations. A smaller Argentine crop is expected to help boost U.S. export demand. Outside markets are mixed as the dollar index has turned slightly higher while strength in crude oil futures could provide some support. 

Soybean futures are called steady on the open. The USDA reports this morning were bearish. USDA left U.S. ending stocks unchanged at 275 million bushels. As expected, USDA cut the Brazilian soybean crop by 2 million metric tons and Argentina by 2.5 mmt. Following the neutral USDA reports, traders will be watching for other news to move the market.

Wheat futures are called steady to 5 cents lower. USDA raised its world wheat ending stocks estimate by 3.1 million metric tons to a record 213.1 mmt. Traders were looking for USDA to lower world ending stocks slightly. But losses will be limited by USDA lowering U.S. ending stocks by 25 million bushels due to an increase in projected exports by that amount.

Cattle futures are expected to open mixed this morning as traders wait for the cash market to develop. Boxed beef prices have improved this week and showlists are generally smaller. This should help cash trade be steady to firm with last week. However, gains will be limited by the still poor processing margins.

Lean hog futures are called steady to mixed. Cash bids are expected to be mostly steady today. Packer margins remain tight and pork cutouts were down 13 cents on Wednesday. But ideas that demand will soon improve seasonally will provide some support to the futures market.

Cotton futures are trading lower this morning. The USDA report was neutral to bearish for cotton. USDA left total cotton supply unchanged and marginally lowered mill use. However, the 2011/12 world cotton estimates include sharply higher supplies, due to higher beginning stocks and production.