Corn futures are called steady to 1 cent lower. The supply/demand report was fairly neutral and near trade expectations. USDA raised exports by 50 million bushels and trimmed carryover that amount to 2.351 billion bushels. Despite the revision lower, ending stocks are expected to remain very large. Traders were looking for USDA to lower China's export number. USDA follow suit and lowered China exports by 1 million tonnes to 5 million tonnes.

Soybean futures are called 2 to 3 cents lower. USDA's supply/demand report was neutral, but we look for futures to follow overnight trade lower. USDA lowered exports by 10 million bushels, adding that to ending stocks which are pegged at 565 million bushels. This was near expectations and if realized will be record large carryover stocks. Some were looking for USDA to trim South American production estimates, but USDA left Brazil at 58.5 million tonnes and Argentina at 40.5 million.

Wheat futures are called 1 to 2 cents lower. USDA made no changes to the U.S. supply/demand numbers. Ending stocks are still projected at 542 million bushels. The market was looking for USDA to lower world wheat production slightly, but instead it was raised 0.6 million tonnes, which bumped world wheat ending stocks that amount to 142.6 million tonnes.

Cattle futures are called steady to mixed. Fundamentals remain bearish with lower cash trade in the north and expectations for $1-$2 lower trade in the south today. Boxed beef prices were $0.79 to $1.10 lower yesterday. Losses are expected to be limited and some higher trade is possible on short-covering from the recent strong losses.

Lean hog futures market is expected to open lower. Weak cash markets and yesterday's $1.10 drop in pork cutouts are expected to weigh on the market. Negative chart patterns will also encourage speculative selling. Losses could be limited by short-covering ahead of the weekend.