Corn: USDA will release new Crop Production and Supply/Demand reports this morning at 7:30 am CT. The trade is expectations a cut of 100 to 120 million bushels from the October production forecast of 12.664 billion bushels. With lower production, USDA is expected to cut ending stocks by 60 million to 70 million bushels to 840 million bushels or less. The biggest surprise would be no cut in production or even a higher estimate. Second, would be a 150 million bushel or larger cut in production. Overnight trade at 6:45 am CT was 7 1/2 to 9 cents higher.
Soybeans: USDA will release new Crop Production and Supply/Demand reports this morning at 7:30 am CT. The general sentiment of the trade is that USDA will again release fundamentally bullish updates on soybeans. The trade is looking for production to be up about 20 million bushels. However, strong demand is expected to push ending stocks lower by about 25 million bushels to 240 million. Overnight trade at 6:45 am CT was 16 3/4 to 18 1/2 cents higher.
Wheat: The USDA Supply/Demand report will influence trade this morning. Traders are looking for USDA to raise ending stocks to around 870 million bushels from 853 million last month. Corn and soybean trade could influence wheat. Poor crop condition ratings will be supportive. USDA released the latest crop conditions and the crop is just 45% good to excellent, the smallest percentage good to excellent since 1990. Overnight trade at 6:45 am CT was 9 1/4 to 9 3/4 cents higher at the CBOT, 10 1/4 to 10 3/4 cents higher at the KCBT and 10 3/4 cents higher at the MGE.
Cattle: Futures are expected to open steady to mixed, but could be influenced by the crop markets which will be watching the USDA reports for direction. Boxed beef prices were mixed on Monday with choice cutouts up 45 cents while select cuts were 78 cents lower. Cash trade has yet to develop this week, which could keep futures choppy until the cash market becomes better defined.
Hogs: Lean hog futures are called lower on the open. Cash markets turned lower on Monday and pork cutouts were $1.24 lower. Charts look technically overbought and with the shaky cash fundamentals, futures are likely to open lower. However, if corn prices surge following the Crop Production report, deferred hog futures could find support.
Cotton: Futures are sharply higher again overnight ahead of the USDA Crop Production and Supply/Demand reports. China’s cotton prices have shot higher and helped pull U.S. futures higher. USDA is expected to strong demand and tight stocks in the monthly update this morning. At 6:30 am CT, December futures were 392 points higher and March was up 299 points.