Corn futures are called 20-25 cents higher on the open. USDA reports were bullish for the corn market. USDA lowered production 93 million bushels and trimmed its ending stocks estimate by 87 million bushels to the very tight level of 745 million bushels. The stocks to use ratio is very low and should be supportive for prices. Quarterly stocks were reported this morning and at 10.040 billion bushels as of December 1, 2010 were about 25 million bushels below trade expectations.
Soybean futures are called 30-50 cents higher this morning. USDA lowered its ending stocks estimate to 140 million bushels, down 25 million from last month. USDA decreased their production estimate by 46 million bushels. After lowering crush by 10 million bushels, ending stocks were cut by 25 million from December. Quarterly stocks as of December 1 of 2.277 billion bushels were about 70 million bushels below trade expectations.
Wheat futures are called 15-20 cents higher. USDA winter wheat seedings number was neutral as it was near trade expectations. Total winter wheat was pegged at 10.99 million acres, just slightly above pre-report trade estimates. However, lower than expected stocks figures and spillover support from corn and soybeans are expected to push prices higher. Wheat ending stock stocks were pegged at 818 million bushels, down 40 million from last month due to a 50 million bushel increase in the export forecast.
Cattle futures are called steady to higher. Strength in boxed beef prices and ideas of firm cash trade this week will be supportive for futures. However, gains could be limited by poor packer margins. The USDA Supply/Demand and Quarterly Grain Stocks reports were bullish for corn, which should be supportive for cattle futures as higher feed costs could limit beef production.
Lean hog futures are called steady to higher. Pork cutouts were up $1.52 on Tuesday. New highs were posted in some futures contracts on Tuesday as cash prices are strengthening. Gains could be limited by profit-taking and concern that backed up hogs will weigh on the cash market later this week or next week. The USDA Supply/Demand and Quarterly Grain Stocks reports was bullish for corn, which should be supportive for hog futures as higher feed costs could limit 2011 pork production.
Cotton futures are sharply higher this morning. USDA left U.S. supply/demand numbers near unchanged, but ending stocks are expected to be very tight at 1.90 million bales. World numbers include lower beginning stocks and production and higher consumption. Global ending stocks were reduced 560,000 bales.