Corn futures are called 12 to 15 cents higher. USDA cut their ending stocks projection to 675 million bushels, down 54 million bushels from last month. This is mostly attributed to an increase in corn used for ethanol by 50 million bushels. The stocks to use ratio is now projected to be 5.0%, matching the record tight ratio in 1995/96. World corn ending stocks were lowered to 122.5 million tonnes from 127 million last month. The market is expected to build on the gains overnight of 3 1/4 to 4 cents.


Soybean futures are called 10 to 15 cents higher. USDA soybean revisions were neutral as U.S. supply/demand numbers were left unchanged. USDA left ending stocks at the tight level of 140 million bushels. In world numbers, USDA raised Brazil’s production to a record 68.5 million tonnes, but cut Argentina’s soybean projection by 1 million tonnes to 49.5 million. In overnight trade, soybean futures were up 4 1/4 to 5 3/4 cents.   


Wheat futures are called 9 to 12 cents higher. USDA left U.S. supply/demand number unchanged from last month. Global numbers were near unchanged, with global ending stocks down just 0.2 million tonnes. Gains in overnight trade and spillover support from corn are expected to push prices higher. Overnight gains were driven in part by strength in China’s wheat prices. Chicago was up 8 3/4 to 9 1/2 cents overnight, KCBT was up 8 3/4 to 9 1/4 cents and MGE was 12 to 13 1/2 cents higher.    


Cattle futures are called steady to lower. Spillover selling, weakness in boxed beef prices and expectations for steady to $1 lower cash trade this week will weigh on futures. Forecasts for moderating temperatures and drier weather in the Plains should help feedlot performance to improve. Losses could be limited by only small losses in beef prices yesterday and strong movement so far this week.


Lean hog futures are called steady to lower. Cash markets are expected to be steady as most packers have filled needs into next week. Forecasts call for moderating temperatures in the Midwest, which should help increase hog marketings. Follow-through selling is expected from the weakness on Tuesday which was attributed to profit-taking from recently set contract highs.


Cotton futures are trading higher this morning. The USDA supply/demand revisions were neutral as U.S. numbers were unchanged and world numbers were near unchanged. Strength is coming from ideas of competition for acreage this spring as USDA’s corn numbers were bullish. At 7:45 am CT, March cotton was 22 points higher at 175.51 cents and December was 219 points higher at 122.75 cents.