Corn futures are called 2 to 3 cents higher. In this morning's Supply/Demand report, USDA left ending stocks unchanged at 1.790 billion bushels. Traders were looking for an increase of 30-35 million bushels, so the report can be viewed as slightly supportive. In world numbers, USDA cut Brazilian corn crop by 2 million tonnes to 49.5 million and Argentina by 3 million tonnes to 13.5 million. But usage was also cut, which actually pushed world ending stocks higher.



Soybean futures are called 5 cents higher. USDA released a new Supply/Demand report this morning and the numbers were neutral to even slightly bearish. Soybean ending stocks were cut by 15 million bushels to 210 million. However, traders were looking for a slightly larger downward revision. World numbers were within trade expectations as Brazil's crop was cut to 57 million tonnes and Argentina fell to 43.8 million. But the market's focus will quickly turn back to Argentine weather and outside markets. Weather forecasts for Argentina are currently mostly dry for the next week to ten days.



Wheat futures are called steady to 3 cents lower. The Supply/Demand report released this morning showed no change in the U.S. balance sheet. World ending stocks were raised to nearly 150 million tonnes from 148.4 million last month. Despite drought conditions in China, USDA left their production figure at 113 million tonnes. Strength in the dollar index overnight is bearish. Some beneficial rainfall has been noted in the southern Plains although soil moisture levels remain inadequate.



Cattle futures are called steady to higher. The market rallied yesterday and improved the charts. Cash trade was firm last week. Cash markets may find support this week by the expected tightening cattle supplies and ideas that beef prices may be bottoming. Boxed beef volume was improved yesterday prices were mixed following big losses last week.



Lean hog futures market is called steady to higher. Packer margins are improving thanks to the 92 cent jump in pork cutouts on Monday and continued weakness in the cash market. Short-covering from technically oversold conditions are expected to support futures, which are trading near contract lows.