Corn futures are called 3 to 4 cents higher. USDA's Supply/Demand report was largely neutral, but outside market strength is expected to support futures. USDA lowered their 2009/10 ending stocks estimate to 1.059 billion bushels, down 55 million from last month. The production estimate was lowered 155 million, but corn for feed use was dropped 100 million. Outside markets are expected to be supportive as Dow Jones futures and crude oil were higher overnight. In overnight corn trade, futures were 3 1/2 to 4 cents higher.

Soybean futures are called 2 to 4 cents higher. The Supply/Demand report was largely neutral although USDA is looking for ending stocks to tighten. Old-crop ending stocks are only expected to be 110 million bushels while 2009/10 ending stocks are projected at 210 million bushels due to the smaller carryin stocks. Outside markets will be a supportive factor as Dow Jones futures and crude oil were up strongly overnight. Overnight trade was mostly higher with gains of 1 to 4 1/2 cents in deferred contracts. July traded 2 cents lower overnight, but firm outside markets and the small old-crop ending stocks estimate should be supportive.

Wheat futures are called steady to 2 cents lower. USDA's 2009/10 ending stocks estimate was on the high side of expectations at 647 million bushels, up 10 million from last month. USDA lowered the feed use estimate by 20 million bushels while decreasing imports by 10 million. But USDA unexpectedly raised world wheat ending stocks by nearly 1 million tonnes. USDA's winter wheat production numbers were near trade expectations with HRW at 868 million bushels and SRW at 415 million, down just slightly from the previous estimate. CBOT futures traded 2 to 2 3/4 cents higher overnight while the KCBT was 3/4 to 1 cent higher.

Cattle futures are called steady to higher on the open. Follow-through strength is expected following the gains in boxed beef prices yesterday. Choice cutouts were up $1. Strength in Dow Jones futures overnight indicates a firm open to the stock market today. Gains will be limited by uncertainty about cash trade this week.

Lean hog futures are called steady to mixed. Short-covering gains failed to hold on Tuesday, but futures remain technically oversold. However, cash fundamentals remain bearish, which could limit a short-covering bounce. Pork cutout values slipped $1.01 on Tuesday. Packer margins remain poor. Expected strength in the stock market could provide some support to futures.