Corn futures are called 1 to 2 cents lower. USDA's first 2005-06 carryover estimate was pegged at 2.54 billion bushels up nearly 350 million bushels from trade expectations. However, 2004-05 ending stocks were left unchanged at 2.215 billion while the market was looking for an increase of 38 million bushels.

Soybean futures are called 2 to 3 cents higher. USDA lowered 2004-05 carryover to 355 million bushels, down 20 million from April. While that was near trade expectations the 2005-06 number at 290 million bushels was about 75 million below pre-report trade estimates.

Wheat futures are called 1 to 2 cents lower. USDA left 2004-05 carryover unchanged at 541 million bushels, but raised 2005-06 to 678 million bushels, up 100 million from trade expectations. Winter wheat production was pegged at 1.591 billion bushels, up 35 million from trade expectations and 92 million above year-ago.

Cattle futures are called steady to mixed. The cash market is still not well established, but there are ideas of mostly steady trade. That would be somewhat of a victory given the slide in beef prices. Boxed beef prices were $1.13 to $1.48 lower yesterday.

Hog futures are called steady to higher. Some spillover momentum from yesterday's gains is expected and fundamental support will come from pork cutouts rising $1.78.