Corn futures are called 3 to 5 cents higher. The Supply/Demand report was fairly neutral with USDA estimating ending stocks at 1.899 billion bushels. This was up 100 million from last month, but just slightly below trade expectations. Spillover support from soybeans and outside market strength will provide support. The dollar was lower and crude oil higher overnight. Overnight trade was 2 to 2 1/2 cents higher.
Soybean futures are called 10 to 15 cents higher for old-crop contracts. USDA left the ending stocks estimate at 190 million bushels. This was unchanged from last month, but traders were looking for a nearly 20 million bushel increase. USDA is projecting the strong export demand to push soybean exports to a record 1.445 billion bushels, up 13% from the previous record last year. Overnight trade was 2 3/4 to 3 cents higher.
Wheat futures are called 10 to 12 cents higher. USDA cut their ending stocks estimate to 950 billion from 1.001 billion last month. USDA raised feed use and exports. In addition world wheat ending stocks were lower by nearly one million tonnes. In addition to the bullish report, weakness in the dollar will provide support this morning. Overnight trade was 2 to 3 cents higher at the CBOT, 2 1/2 cents higher at the KCBT and 1/4 to 1/2 cent higher at the MGE.
Cattle futures are called steady to mixed. Light trade volume is expected ahead of the weekend as most cash trade is done for the week. Boxed beef prices have been choppy the past few days, but choice cutouts were up 33 cents on Thursday. Cash cattle trade at $99-$102 this week, up $4-$5 from last week. But with already priced into the futures market, choppy trade is likely.
Lean hog futures are called steady to higher. The $2.03 jump in pork cutouts has helped improve poor packer margins. Cash trade is expected to be steady to even firm as packers book hogs for next week. Gains in the futures market are expected to be limited by the recent rally to new contract highs as futures remain vulnerable to profit-taking.
Cotton futures are trading higher this morning. USDA’s ending stocks estimate was near trade expectations at 3 million bales. Outside markets are also providing some support as the dollar is trading lower.