Corn futures were a little lower overnight. The USDA reported corn grind at 427.5 million bushels, down 4% from August, but seasonally grind tends to slow starting in September. The average estimate for corn production, pre-WASDE, came in at 13.562 billion bushels, up slightly from the USDA’s Oct estimate of 13.555 billion. Average yield projections were reported at 168.2 bu/ac, compared to 168.0 bu/ac from last month. According to the ADM CEO, farmers have only sold 30% of their corn compared to the 45% average. December corn futures moved 1.75 cents lower to $3.7875/bushel before dawn Wednesday, while March lost 1.75 cents to $3.87.

Soybean futures were firmer early Wednesday morning ahead of the monthly export sales data due out this morning. The average of estimates for Nov WASDE were reported at 3.914 billion bushels for production, compared to 3.888 billion last month, and yields came in at 47.5 bu/ac compared to the USDA’s 47.2 bu/ac estimate in October. The CEO at ADM stated that farmers have only sold 35% of their beans this year compared to 60% normally. Brazil’s crushing association raised its 2015/16 soybean crop estimate to 98.6 million tonnes, versus 97.8 million projected last month. January soybeans gained 3.25 cents to $8.805/bushel early Wednesday, while December soyoil climbed .27 cents to 28.42 cents/pound and December meal moved $0.5 higher to $301.80.

Wheat futures were lower Wednesday morning after gaining 1.4% Tuesday at the close. Favorable rains in the forecast across the U.S. pressured futures while struggling export demand has made it difficult for wheat to sustain rallies. Ethiopia purchased 800,000 tonnes of wheat from the Black Sea region but U.S. wheat remains too expensive. In Australia, heavy rains, as much as 3.9 inches) are threatening their east coast wheat crop and could cause a cut in their production, supportive for global wheat prices. The east coast region, New South Whales, is estimated to produce 7.2 million tonnes of Australia’s total 25.3 million tonnes wheat forecast. December CBOT wheat futures fell 3.5 cents to $5.13/bushel early Wednesday, while Dec KC wheat lost 3 cents to $4.845, and December MWE moved 4.5 cents lower to $5.1525.                

Live cattle fell sharply Tuesday, along with the rest of the protein complex, as cash values slide in an attempt to bring equilibrium to a market that still has a way to go to work through record-heavy cattle. Cash beef slid lower with choice down 0.61 to 219 and select was down .81 to 211.71. Cattle slaughter so far this week was at 222,000 head, compared to 222,000 last week and 229,000 a year ago. December live cattle futures dropped 1.52 cents to 140.22 cents/pound Tuesday, while February futures lost 1.05 cents to 142.65. January feeder cattle slid 1.02 cents to 182.17 and March feeders moved 0.95 lower to 178.77.  

Nearby hogs fell again Tuesday by .7% continuing the reversal lower that was signaled by pork belly wholesale prices diving last Thursday. The shift in lower demand moving into the fall is anticipated by traders and the variable going forward will be how much holiday demand (hams) might offset the plunge in demand for BLT’s and other warm weather grilling items. While pressure will remain on futures in the months ahead also due to increased supply, seasonal features could limit the downside. Cash hogs fell 1.68 lower to 59.27. Hog slaughter so far this week was at 867,000 head, compared to 860,000 last week and 857,000 last year. December hog futures fell 0.70 cents to 58.22 cents/pound Tuesday, while April hogs lost 1.27 to 65.95.              

Cotton futures were higher early Wednesday morning. Monday, the Intercontinental Exchange (ICE) launched the new World Cotton contract. Many hope it will fix price distortions and act as a mechanism to better facilitate the supply and demand issues world cotton faces. If successful, some industry sources expect this new contract could replace the benchmark cotton contract that has set the price of T-shirts and socks make in Bangladesh to Vietnam and has affected the incomes of farmers from China to Egypt for 150 years. Cotton export data this week as well as November supply/demand estimates due out next week will help determine price action. November from the December cotton futures gained 0.06 cents to 62.63 cents/pound Wednesday, while May cotton gained 0.06 cents to 63.16.