Corn futures are called 1 cent higher. Overnight trade at 6:30 am CDT was 1/2 to 1 1/4 cents higher. The market is finding light support from the USDA Supply/Demand report that showed increased usage of corn for ethanol use. Ending stocks were lowered from last month. However, gains in the futures market are expected to be limited by favorable crop weather and ideas of record yield potential.
Soybean futures are called steady to 1 cent lower. Overnight trade at 6:30 am CDT was 1/4 to 1 1/4 cents lower. The market fell on Thursday in part due to cancelled export purchases by China from South America. That along with favorable weather for early season crop growth weighed on prices overnight. USDA trimmed ending stocks projections on Thursday, but they are expected to almost double next crop year from 185 million bushels in 2009/10 to 360 in 2010/11. Ideas of strong yields are being favorable weather forecasts, which could further add to stocks next year.
Wheat futures are called steady to mixed. Overnight trade at 6:30 am CDT was steady to 1 cent higher at the CBOT and 1/4 of a cent lower at the KCBT. Choppy trade is expected following the small short-covering rally on Thursday. While USDA lowered its global ending stocks estimate yesterday, global supplies remain abundant. Demand for U.S. wheat remains sluggish, although weekly export sales reported on Thursday were improved. Rain in the central and southern Plains will slow some harvest progress and could increase concerns about quality.
Cattle futures are called steady to higher. Technically oversold conditions and some follow-through buying from the rebound on Thursday are expected to support futures this morning. Cash trade has been light so far this week, but has developed at are $93 live, down $2 from last week and $150 dressed, down $4-$5. Gains in futures will be limited by the continued erosion in beef prices. Choice cutouts were down $1.65 and select cuts were $2.08 lower on Thursday.
Lean hog futures are called higher on the open. Pork cutouts finally turned higher, gaining 68 cents on Thursday. Cash trade has stabilized and could turn higher next week as packers are short-bought and market ready hog supplies tighten. A rebound in the stock market and some recent weakness in the dollar will be supportive.