Corn futures are called 10 to 12 cents higher on the open. USDA's production number of 10.905 billion bushels was 232 million below the average trade estimate and 209 million below the September number. USDA lowered their ending stocks number to 996 million bushels, down 220 million from trade expectations.

Soybean futures are called 5 to 7 cents higher. Spillover support from corn and wheat is expected while USDA numbers were slightly supportive for soybeans. Production at 3.189 billion bushels was slightly below trade expectations and 2006-07 ending stocks of 555 million bushels are 25 million below the average trade estimate.

Wheat futures are called 10 to 15 cents higher. USDA cut U.S. ending stocks to 418 million bushels, 17 million bushels below the average trade estimate. USDA lowered the Australian crop to 11 million metric tons, down sharply from the 19.5 million ton estimate last month. USDA lowered the world wheat ending stocks number to 119.3 million tons, which would be the smallest in 25 years.

Cattle futures are expected to open mixed. Moderate cash trade developed yesterday at $137 dressed in the north and $88 live in the south, down generally $2-$3 from last week. Moderate strength in boxed beef cutout values and some short-covering should provide light support.

Lean hog futures are called steady to mixed. Spread activity could again support the December contract. Large marketings have helped packers lower bids this week while still bringing enough hogs to market. Packer margins have improved recently as pork cutouts have held up relatively well, but there is concern that cutouts values could fall next week.