Corn futures are called steady on the open. USDA raised ending stocks by 5 million bushels to 832 million. Traders were looking for a decrease in ending stocks, but the report is still seen as fairly neutral. Overnight trade was 3 1/4 to 3 3/4 cents higher, but the Supply/Demand report is expected to keep futures near steady on the open.   


 


Soybean futures are called steady to 5 cents higher. As expected, USDA lowered ending stocks, cutting them 20 million bushels to 165 million. Exports were raised 20 million bushels. USDA left South American production numbers unchanged. Given the overnight strength in the market of 4 1/2 to 5 1/4 cents, we look for a firm open.


 


Wheat futures are called 3 to 10 cents lower. USDA bumped U.S. ending stocks up 10 million bushels to 858 million. But the bearish surprise was the increase in world production and ending stocks. USDA raised world production to 646.6 million tonnes, up 3.7 million and raised world ending stocks to 176.7 million tonnes, up 4.2 million tonnes from November.


 


Cattle futures are called steady to mixed. Cash cattle trade turned lower this week. Trade in the North was down $1 on a live basis and $4-$5 lower in the North on a dressed basis. The decline in boxed beef prices was bearish as choice cutouts were $1.34 lower. However, strong export demand and short-covering are expected to limit losses or support futures.


 


Lean hog futures are called steady to higher. Pork cutouts were up 35 cents and cash markets on average were up over $1. Favorable packer margins and ideas that cold and wintery weather will disrupt marketing early next week have helped push cash prices higher late this week.


 


Cotton futures are called sharply higher. USDA cut U.S. cotton ending stocks to 1.9 million bales, showing very tight stocks. However, global production and ending stocks were raised. At 7:45 am CT, March cotton was trading up the 500 point limit.