Corn futures are trading 3 to 4 cent lower this morning. Forecasts for rain across the U.S. Corn Belt are weighing on the market; however, if conditions remain dry as they are prices will rise again. The market is still pressured by Tuesday’s bearish Supply/Demand report. Old crop ending stocks were reported higher than expected, there were no revisions to new crop estimates. Old crop exports were reported down 50 million bushels from the previous month.

Soybean futures are trading 1 to 5 cents lower this morning. Soybean futures are down slightly after posting moderate gains yesterday due to a price friendly USDA report. Market fundamentals are strongly bullish for the bean market. USDA trimmed both old crop and new crop ending stocks thanks to export demand. Tighter supplies and firm demand should limit losses during today’s trade. Calls for rain across the Midwest are also weighing on prices.

Wheat futures are trading 5 to 6 cents higher this morning. Wheat futures are rebounding as the market reacts to a fairly bullish USDA Supply/Demand report. Intially, prices dropped and continued to decline on Tuesday posting moderate losses on the close. However, the tide has turned as the Australian government reduced its 2012/13 wheat production due to dry growing conditions. USDA reported old crop and new crop ending stocks lower, not to mention that USDA lowered average yield from 45.7 bu per acre to 45.4 bu per acre.

Cattle futures are called to open mixed this morning. Declining beef prices and possible waning beef demand will weigh on market prices. Both choice and select cutouts closed lower on Tuesday. Cash trade has been relatively quiet. Trade is expected to pick up towards the latter part of the week with steady to higher prices. Asking prices are around $124 in the South and $198 plus in the North. Weakness in the dollar index should lend support to prices.

Lean hog futures are called to open mixed this morning. Although the market is called to a soft open, prices will see continued support from higher cash prices and tight supply. Pork cut-out value is up again along with seasonal demand for pork products. However, prices will see some push back as USDA raised the 2012 pork production by 85 million pounds and traders look to cash in on profits.

Cotton futures are trading 20 to 45 points higher this morning. Cotton futures are trading higher as traders cover their short positions in the market. Prices closed yesterday’s trade mixed to mostly lower after the USDA reported a record forecast for world 2012/13 cotton ending stocks. The report estimated global ending stocks at 74.51 million bales, up 1.03 percent from the previous month’s estimate.