Corn futures are called unchanged on the open. The USDA Supply/Demand report was friendly, but that is only expected to help the market bounce from overnight weakness. Overnight trade was 4 1/2 to 5 1/4 cents lower. USDA pegged old-crop ending stocks at 1.738 billion bushels, down about 125 million from trade estimates and down 161 million from last month. The fir 2010/11 ending stocks estimate of 1.818 billion bushels was slightly below trade expectations. However, gains will be limited by the strong pace of planting, which USDA pegged at 81% as of Sunday. Strength in the dollar and weakness in energies will also limit gains.
Soybean futures are called 6 cents lower. The Supply/Demand report was neutral for the market. USDA left 2009/10 ending stocks unchanged at 190 million bushels and pegged 2010/11 ending stocks at 365 million, up slightly from the average trade guess. Futures were down 4 3/4 to 6 1/4 cents overnight with strength in the dollar and weakness in crude oil and gold weighing on trade. USDA estimated planting progress at 30% complete as of Sunday, which was at the low end of trade expectations but well above the five-year average of 19%.
Wheat futures are called 3 to 5 cents lower. In the Supply/Demand report, USDA left 2009/10 ending stocks at 950 million bushels. Ending stocks for 2010/11 are expected to grow to 997 million bushels, which was slightly above the average pre-report trade estimate. Outside markets are slightly bearish as the dollar was higher overnight. USDA reported the winter wheat condition at 66% good to excellent, down 2 points from last week. The rating is far above last year at 46% and the ten-year average at 48%. Spring wheat planting progress was 67% complete last week, up 1% from the five-year average. Overnight trade was 2 1/2 to 2 3/4 cents lower at the CBOT, 1 3/4 cents lower at the KCBT and 2 1/4 cents lower at the MGE.
Cattle futures are called steady to higher. Cash trade developed yesterday at steady to $1 higher than the previous week. It appears that short-bought packers with favorable marketings will have firm bids for cattle this week. The rebound in the financial markets yesterday helped support futures, although they eased again overnight.
Lean hog futures are called steady to mixed. The cash market was weak on Monday as traders work to improve margins. The margins will benefit from the 40 cent jump in pork cutouts. Outside financial markets helped the short-covering rally on Monday. However, market eased overnight with DJIA futures lower and the dollar higher.