Corn futures ended locked limit up on Friday. The USDA reports this morning were supportive. USDA cut the size of the 2006 crop to 10.535 billion bushels, down 210 million from the previous estimate. Ending stocks were cut to only 752 million bushels versus 935 million in December. March closed 20 cents higher at $3.96 1/2 and December was 20 cents higher at $3.94 1/2.

Soybean futures rocketed higher on Friday. Limit gains in corn fueled the rally. The USDA reports this morning were slightly supportive as they were below pre-report estimates. USDA reported 2006 soybean production at 3.19 billion bushels, down only 0.5% from the November figure, but the market had been anticipating an increase of up to 3.3%. March closed 42 1/4 cents higher at $7.16 1/2 and November was 40 1/4 cents higher at $7.63 1/2.

Wheat futures were sharply higher on Friday. The locked limit trade in corn supported the wheat markets today. The wheat reports released by USDA Friday morning were neutral to slightly bearish. However, the tightening corn supply/demand and soaring corn prices overshadowed all other factors. CBOT Mar was 23 cents higher at $4.79 1/2. KCBT Mar climbed 24 cents to close at $5.05 1/4 while MGE Mar closed 25 cents higher at $5.07.

Cattle futures closed mostly lower on Friday. The market was pressured by the lack of cash market activity and renewed concerns about soaring corn prices. Cash trade is expected in the $89-$90 range this afternoon, up about a dollar from last week. February fell 180 points to close at $91.80. April was 47 points lower at $93.87. January feeder cattle fell the 300 point limit to close at $94.57.

Lean hog futures closed mostly higher on Friday, driven up by the sharp rally in corn prices. Hog traders responded to the rally in corn by bidding up hog futures. If corn prices move higher, hog producers may cut back on production, and fewer hogs coming to market would result in higher hog prices. February fell 13 cents to $60.38, but June posted a gain of $1.03 to close at $73.68.