Corn futures are called 3 to 5 cents higher. USDA pegged 2008/09 ending stocks at 1.6 billion bushels, down 100 million from last month and 87 million below the average trade estimate. For the initial 2009/10 projection, 1.145 billion bushels of carryout fell 138 million below the average trade estimate. Slow planting progress and a little wetter forecasts for the Midwest overnight will also be supportive. USDA reported planting progress at 48% as of Sunday. While this was within trade expectations, it was well below the 5-year average of 71%. Overnight trade was 1 to 3 3/4 cents higher.



Soybean futures are called 10-15 cents higher. USDA ending stock projections for 2008/09 and 2009/10 were right on pre-report trade estimates. USDA pegged 2008/09 carryout at only 130 million bushels and 2009/10 at 230 million. The slow planting pace of soybeans and corn is bullish as yield potential will decline. USDA pegged soybean planting progress at 14% complete, slightly below trade expectations. The 5-year average is 25% planted. Firm outside markets overnight will also provide support. Overnight trade was 9 3/4 to 11 cents higher.



Wheat futures are called 3 to 5 cents higher. USDA pegged winter wheat production at 1.502 billion bushels, down 25 million from pre-report trade estimates and 366 million below year-ago. USDA also pegged 2008/09 ending stocks at 669 million bushels, down 19 million from pre-report trade estimates and 27 million below last month. For the 2009/10 crop, USDA's 637 million bushel estimate was right on trade expectations. USDA lowered winter wheat condition ratings slightly last week to 46% good to excellent from 47% the previous week. Spring wheat planting progress remains well below normal at 35% seeded versus the 5-year average of 78%. Overnight CBOT trade was 4 to 5 cents higher and the KCBT was 3 to 4 3/4 cents higher.



Cattle futures are called steady to higher. Boxed beef prices turned a little higher on Monday and there is optimism that beef movement will improve as wholesalers gear up for Memorial Day weekend. Cash trade is expected to firm this week as cattle slaughter has been moving higher.



Lean hog futures are called steady to mixed. Cash prices were up strongly again on Monday as packers continue to raise bids to fill increased slaughter schedules. Pork prices were up strongly last week, but were down 32 cents on Monday. Gains in the futures market will be limited by the sharp drop in packer margins, brought on by the rally in cash.