Corn futures are called 2 to 3 cents lower. USDA's production number of 10.976 billion bushels was 181 million above trade estimates and 236 million above the July number. The ending stocks estimate for 2006-07 was raised to 1.232 billion, up 127 million from trade estimates and 155 million above the July estimate.

Soybean futures are called 4 to 6 cents higher. The production number from the USDA was 2.928 billion bushels, 92 million below the average trade estimate and 158 million below the July number. Ending stocks in 2006-07 were revised lower to 450 million bushels versus trade expectations of 570 million bushels. The report should support the market, but traders may discount the report due to rainfall in August that was not reflected in USDA's numbers.

Wheat futures are called 3 to 5 cents lower. USDA only trimmed spring wheat production to 463.5 million bushels, from 465 million last month. Traders were looking for a 35 million bushel cut. The larger spring wheat crop resulted in wheat ending stocks being 434 million bushels, up 24 million from trade expectations although it is 4 million below the July number.

Cattle futures are called steady to higher. Further strength in beef prices and ideas of firm cash trade again next week will be supportive. Cash trade was $3-$4 higher this week as packers bid up for supplies due to strong wholesale demand ahead of Labor Day. However, we would not be surprised to see some profit-taking ahead of the weekend following the recent push to new contract highs.

Lean hog futures are called steady to mixed. Cash markets have held steady the past couple of days despite poor packer margins. Pork cutouts were down 36 cents on Thursday and without the bullish influence of cattle, some profit-taking could weigh on lean hog futures.