Corn futures are called 3 to 5 cents lower. USDA pegged 2008/09 ending stocks at 1.770 billion bushels, up about 70 million from trade estimate and 170 million above last month. For the 2009/10 crop year, ending stocks are pegged at 1.550 billion bushels. This was slightly below trade expectations although still up 460 million from last month to reflect the increased acreage. Outside market will also provide some bearish influence as crude oil was lower while the dollar index was higher.

Soybean futures are called 5 to 10 cents lower. USDA pegged 2008/09 ending stocks at 110 million bushels, unchanged from last month. But the 2009/10 ending stocks estimate was raised to 250 million bushels, up about 30 million from expectations and 40 million above last month. The increased new-crop ending stocks projection and bearish influence from outside markets are expected to pressure prices. The dollar was higher overnight while crude oil was lower.

Wheat futures are called steady to 5 cents lower. Wheat ending stocks for the current 2009/10 crop year are projected at 706 million bushels, up slightly from trade expectations and up 59 million from last month. Wheat production numbers came in near trade expectations. All winter wheat was pegged at 2.112 billion, up 96 million from last month but near trade expectations. All winter wheat at 1.525 billion bushels was right on trade expectations. Strength in the dollar overnight will be a bearish factor this morning.

Cattle futures are called steady to mixed as traders wait for more cash market news for direction. Light trade earlier this week was down $1-$2 on a dressed basis in the North. Boxed beef prices edged higher on Thursday, but supplies are said to be moderate to heavy, so any improvement today will likely be limited. Spillover strength from lean hogs and some technical strength could provide some technical buying.

Lean hog futures are called higher on the open. The $2.38 jump in pork cutout values on Thursday and strength in the cash market yesterday will be supportive. Packer margins remain poor, but hog supplies are tight and speculative buying has pushed hog futures above some technical resistance levels.