Corn futures are called 3 to 5 cents higher. USDA lowered their ending stocks projection to 1.740 billion bushels, down 50 million from last month and 60 million below the average pre-report trade estimate. USDA lowered exports by 50 million bushels to 1.7 billion, but raised corn used for ethanol by 100 million to 3.7 billion bushels. Spillover strength is also expected to come from soybeans and the stock market. Overnight trade was 1 to 2 1/2 cents lower.



Soybean futures are called 15 cents higher on the open. USDA lowered their ending stocks projection to the very tight level of 185 million bushels. This is down 25 million from February and 10-15 million bushels below the average pre-report trade guesses. While a cut in ending stocks was already built into expectations, this was larger than expected. Crush was lowered by 10 million bushels, but exports were raised by 35 million bushels to 1.185 billion. The bullish USDA report should help the market build on overnight gains of 4 1/4 to 6 1/2 cents higher.



Wheat futures are called 5 to 7 cents lower. USDA raised their ending stocks estimate to 712 million bushels, up 57 million bushels from last month and over 50 million above pre-report trade estimates. Exports were lowered 20 million bushels to 980 million, food use and seed was cut by 27 million bushels and wheat imports were raised by 10 million bushels. While the report was negative, the expected higher opening for corn and soybeans should limit losses in the wheat market. Overnight trade at the CBOT was 1 1/4 to 2 1/4 cents higher and the KCBT was 1 cent higher to 1 1/4 cents lower.



Cattle futures are called steady to higher. The rally in the stock market yesterday and expectations for a higher open this morning will provide some support to futures trade. Boxed beef prices have been moving higher, gaining 28 to 46 cents on Tuesday. Cash trade is still expected to be firm this week as cattle supplies remain tight.



Lean hog futures are called steady to mixed. Weakness in the cash market and follow-through selling from yesterday's losses will limit strength. But the rally in the stock market and ideas of firm trade again this morning should provide some support. Pork cutouts were able to rally 82 cents on Tuesday. But packers will need further strength to get margins profitable.