Corn futures are called 1 to 2 cents lower. Overnight trade was 1 1/4 to 2 cents lower. The market made a long overdue technical correction on Thursday following the USDA reports. Consolidation trade is expected today as traders wait to see which direction to go from here. Fundamentals remain bullish with tight ending stocks expected this crop year. However, USDA is expecting higher prices to curb exports and feed use by 50 million bushels.



Soybean futures are called 1 to 2 cents higher. Overnight trade was 1 1/2 cents lower to 2 3/4 cents higher. The soybean market continues to follow corn and despite some expected weakness in corn this morning, soybeans are called slightly higher. The corn to soybean ratio still favors corn so beans will have to make up some ground to prevent losing too many acres next spring. USDA's soybean production number was not raised as much as expected, but it is still estimated to be record large.



Wheat futures are called steady to mixed. Overnight CBOT trade was 2 cents lower to 1 cent higher and the KCBT was 1 to 1 1/4 cents higher. Speculative long liquidation and profit-taking on the recent rally weighed on futures yesterday, but we look for some consolidation of recent action this morning. USDA left the U.S. wheat export projection unchanged despite sluggish sales so far this year and world wheat stocks were tightened. However, the negative market reaction to the USDA supply/demand report suggests that the long running bull market is nearing exhaustion.



Cattle futures are called steady to mixed. Futures action yesterday was positive as prices bounced despite cash trade dropping $3 this week. Market action suggests that a near term bottom was established at Wednesday's lows. Cutout values continue to decline, but the beef market is expected to rebound next week as retailer attention shifts to post Thanksgiving features.



Lean hog futures are called steady to lower. Cash bids are expected to be lower again today as packer margins have slipped into negative territory this week. With pork cutout values and cash on the defensive, we look for futures to be weak today.