Corn futures are called 6 to 9 cents lower. USDA’s Crop Production and Supply/Demand reports were neutral, but spillover weakness and outside markets are expected to weigh on futures trade. USDA pegged the crop at 12.497 billion bushels and ending stocks at 672 million, both near trade expectations. Outside markets are being pressured by increased concern of Greece defaulting on its debt. Expected weakness in the stock market and losses in crude oil will be bearish influenced on the market.

Soybean futures are called 10 to 15 cents lower. USDA’s Crop Production and Supply/Demand reports were bearish for the market. The U.S. crop was raised to 3.085 billion bushels while traders were looking for a small decline. Instead of trimming ending stocks as expected, USDA raised the projection to 165 million bushels from 155 million last month. Outside market pressure is expected to also weigh on futures. Increased concern about European debt is expected to weigh on the stock market and crude oil futures are trading solidly lower as well.

Wheat futures are called 15 to 20 cents lower. USDA’s Supply/Demand report was bearish for the wheat market. U.S. ending stocks were raised to 761 million bushels from 671 million last month while traders were looking for the number to decline slightly. USDA lowered both exports and food use. Global supply/demand revisions were also bearish. USDA raised their projection for ending stocks to 194.6 million tonnes, up 5.7 million tonnes from last month. Traders were looking for a small decline.

Cattle futures are called higher. Strength in the cash market last week and the stabilization of beef prices will be supportive. Cash cattle traded at mostly $118, up $4-$5 from the previous week. Tight supplies of market ready cattle pushed prices up strongly. Boxed beef prices were up slightly on Friday, but packer margins have tightened, which could discourage further strength in the cash market this week.

Lean hog futures are expected to open mixed. Front end contracts could be pressured by the 76 cent drop in pork cutouts and the steady to lower tone expected in the cash market. However, strong pork exports could provide some support. For the first 7 months of the year, U.S. exports were up 16% from year-ago. The reaction in corn from the USDA reports this morning could provide some direction for deferred contracts.

Cotton futures are trading somewhat lower this morning. The USDA reports this morning were fairly neutral for the market. USDA tweaked production numbers, but they were very little changed from last month at 16.56 million bales of production. Exports were lowered from 12.3 million bales to 12.0 million. The ending stocks projection was 3.4 million bales compared to 3.3 million last month. At 7:45 am CT, December cotton was down 37 points and March was down 62 points.