Corn futures are called 12-15 cents higher, but could be limit up. USDA cut the 2006 crop to 10.535 billion bushels, down 210 million from the previous estimate and nearly 165 million below trade expectations. Ending stocks are now projected to fall to 752 million bushels compared to the December number of 935 million. Quarterly stocks of 8.93 billion bushels are about 140 million below pre-report trade estimates.

Soybean futures are called 10-15 cents higher. Spillover support is expected to come from corn. Soybean numbers this morning were slightly below trade estimates. The 2006 crop is pegged at 3.188 billion bushel, down 16 million from the previous number. Ending stocks were revised 10 million bushels higher to 575 million bushels. While the trade was looking for a number closer to 600 million bushels, ending stocks are projected to be record large. Quarterly stocks at 2.697 billion bushels are about 50 million below pre-report-trade estimates.

Wheat futures are called 5-10 cents higher on spillover strength from corn. Acreage and supply/demand numbers for wheat were neutral to bearish. Winter wheat seedings are pegged at 44.089 million acres, down just slightly from pre-report expectations. Ending stocks for this crop year were revised up to 472 million bushels, 34 million higher than last month. USDA cut exports by 25 million bushels to 875 million this marketing year. Quarterly stocks at 1.315 were right on pre-report trade estimates.

Cattle futures are called steady to mixed as traders wait for cash business to develop. Rising beef prices and ideas of firm cash trade this week will provide some support. Light slaughter and recent losses in cattle weight due to wintery weather in the Plains will restrict beef output and underpin the wholesale beef market.

Lean hog futures are called steady to mixed. Cash hog prices are expected to hold near steady, with most packers having needs covered into next week. Cold weather is headed for the Midwest this weekend which could reduce marketings early next week. That may provide some modest support to cash prices.