Corn futures are called 2 to 3 cents lower. USDA raised production to 11.112 billion bushels, up 80 million from November and slightly above trade expectations. Ending stocks topped trade expectations at 2.426 billion bushels. December 1 stocks of 9.813 billion bushels were about 75 million above pre-report trade estimates.

Soybean futures are called 7 to 10 cents lower. USDA boosted their ending stocks estimate to 505 million bushels, up 100 million from last month and nearly 50 million above trade expectations. Soybean production of 3.086 billion bushels was near trade estimates, but December 1 stocks of 2.502 billion bushels were about 60 million above pre-report trade estimates.

Wheat futures are called 1 to 2 cents higher. Losses in soybeans and corn may limit gains, but winter wheat seedings of 41.367 million acres fell over 1 million from trade expectations. Hard red winter acreage of 29.9 million compares to trade expectations of near 31 million. Wheat ending stocks of 542 were slightly above trade expectations.

Cattle futures are called higher. The market fell sharply yesterday as technical weakness extended losses. We look for prices to bounce today as some cash trade was noted in the southern Plains at $95, up $1 from last week. Despite the call for firm trade, technically the market has turned negative.

Lean hog futures are called steady to lower. Further weakness in the cash market and spillover pressure is expected to weigh on prices again. However, some bargain hunting and stable pork cutouts prices on Wednesday should help limit losses.