Corn futures are called 2 to 3 cents lower. USDA raised their 2004 production estimate to 11.807 billion bushels, up 66 million from November. December 1 stocks of 9.449 billion bushels were 157 million above the average trade estimate and nearly 1.5 billion above year-ago.

Soybean futures are called steady amid neutral USDA numbers this morning. USDA lowered the crop slightly to 3.141 billion from 3.15 billion in November. December 1 stocks are the largest on record, but at 2.305 billion are slightly below pre-report estimates.

Wheat futures are called 3 to 5 cents higher. USDA's winter wheat acreage number of 41.6 million acres is well below trade guess of 43.2 million. HRW and SRW numbers were below trade expectations. December stocks were pegged at 1.431 billion bushels, which was slightly above the average trade estimate, but 89 million below year-ago.

Cattle futures are called higher this morning on continued reaction to another mad cow case in Canada and improved cash trade prospects this week. Light trade in Nebraska was up $5-$7 on a dressed basis. Improved cutout prices have helped packer margins. Boxed beef prices were $3.04 to $4.08 higher on Tuesday.

Hog futures are expected to open steady to higher. Spillover from yesterday's bullish reaction to another confirmed case of BSE in Canada should be supportive. Cash bids are called mostly steady, but pork cutouts did jump 94 cents on Tuesday.