Corn futures are called 5 to 10 cents lower. USDA's production estimate of 12.761 billion bushels was up from the July number of 12.101 billion and was about 250 million above trade expectations. However, losses will be limited by a smaller than expected increase in ending stocks for the 2009/10 marketing year, which at 1.621 billion was about 75 million below trade expectations. USDA raised their usage numbers significantly as corn for feed was bumped 100 million bushels higher, corn for ethanol was raised 100 million and exports were increased by 150 million.

Soybean futures are called 5 cents higher to 5 cents lower. USDA numbers were slightly supportive, but losses in corn could initially pull prices a little lower. USDA's soybean production estimate of 3.199 billion bushels was about 25 million below trade expectations and down 61 million from July. The estimated yield was about 1 bushel per acre below trade guesses. But ending stocks were near expectations. For the 2009/10 crop, ending stocks were trimmed to 210 million bushels from 250 million in July. USDA left 2008/09 ending stocks unchanged at 110 million bushels.

Wheat futures are called 5 to 7 cents lower. USDA raised their all-wheat production number to 2.184 billion bushels, about 30 million above trade expectations and 72 million above the July number. The other spring wheat crop production estimate was raised to 548 million bushels, up 42 million from in July. Durum was also raised to 98 million bushels from 81 million last month. World wheat ending stocks were also raised 2.3 million tonnes as the world wheat crop was increased despite some drought. U.S. wheat ending stocks were raised to 743 million bushels from 706 million in July, although that was down slightly from trade expectations.

Cattle futures are called steady to higher. Boxed beef prices improved on Tuesday with good volume trade. Choice cutouts were up 77 cents. With tightening supplies of market ready cattle, the cash market is expected to hold steady or trade firm this week.

Lean hog futures are called steady to mixed. Pork cutout values fell $1.05 on Tuesday and cash markets continue to erode. However, with front end futures already at contract lows and the market extremely oversold technically, the market is likely to see a short-covering bounce at soon.