Corn futures are steady to slightly lower Friday morning. After opening 4 to 6 cents lower, the market quickly rallied to trade slightly higher before turning mixed. This week's sharp rally attracted an increase in cash corn movement to contribute to the early setback. December corn is unchanged at $3.44 1/2 and the March 07 contract is 1/4 of a cent lower at $3.59.



Soybean futures are 2 to 3 cents higher after opening a couple cents lower. The market continues to find strong speculative support amid ideas that prices must rise to prevent a huge shift to corn acreage next year. Friday profit taking has limited gains amid concerns that USDA will raise the crop forecast next Thursday. The November futures contract is up 2 1/2 cents at $6.50 3/4 and January is 2 1/4 cents higher at $6.63 1/2.



Wheat futures are lower at mid morning Friday pressured by forecasts for rain in the southeastern hard red winter wheat areas Sunday and Monday. Some speculative longs are liquidating wheat positions in favor of corn and soybeans. The Chicago December contract is down 2 1/2 cents at $4.89. Kansas City December is also 2 1/2 cents lower at $5.21 1/2. Minneapolis December is 2 1/2 cents lower at $5.01.



Cattle futures are 60 to 90 points lower in the most actively traded contracts. Stop loss selling surfaced after the December contract broke chart support at $86.60. Lower cash cattle prices this week and concerns that Thanksgiving will put downward pressure on cutout values are negative fundamental factors. December cattle futures are down 65 points at $86.10 while the February contract is 90 points lower at $89.20.



Lean hog futures have turned lower after a steady opening Friday. The December lean hog futures contract is down 35 points at $64.25 and February is 60 points lower at $67.20. Cash hogs are steady in Midwest direct trade and higher at the terminals. However, weaker futures prices reflect concerns that cash prices will decline next week as retail buyers focus on Thanksgiving features.