The grain markets were neutral-lower overnight after yesterday’s surge on USDA data. To recap, the report estimated corn acreage to be 88.897 million acres, compared to the average forecast of 89.173 million acres and the intentions estimate of 89.199. June 1 corn stocks were reported to be 4.447 billion bushels, lower than the average estimate of 4.555 billion bushels. Both the acreage and stocks reports were bullish and profit taking likely occurred in afterhours trading. The world continues to watch Greece after they missed their debt payment yesterday. The US Dollar Index is up .34 to 95.83. July corn futures are down .5 cents to $4.135/bushel early Wednesday morning, while December lowered.25 cents to $4.3125.

The soy complex is trading mixed Wednesday morning after surging over 50 cents yesterday in light of the government report. To summarize, the USDA reported soybean stocks at 625 million bushels, compared to the average estimate of 670 million bushels. Also, the USDA reported soybean acreage to be 85.139 million acres, compared to the average forecast of 85.171 and the March projection of 84.635 million acres. The re-surveying of AR, KS, and MO, on-going weather forecasts, and yield adjustments will continue to drive the markets. July soybeans slid 3 cents to $10.5325/bushel at dawn Wednesday, while July soyoil lost .20 cents to 33.36 cents/pound, and July meal climbed $1.2 to $360.7/ton.

Wheat futures are lower Wednesday after they advanced Tuesday despite bearish USDA wheat numbers. As a recap, wheat stocks came in at 753 million bushels, compared to 590 million last June and to the average trade estimate of 718 million bushels. Funds were likely big buyers yesterday in light of end of month and end of quarter repositioning. This might explain wheat’s surge on bearish figures. Canadian wheat acres are expected to rise 1.3%, according to Statistics Canada. Also, the EU cut their wheat forecast by 1.5 million tonnes, to 140 million tonnes. July CBOT wheat futures slid 6.75 cents to $6.08/bushel early morning Wednesday, while July KC wheat lost .25 cents to $5.93/bushel, and July MWE lowered 3.75 cents to $6.185.

Live cattle futures dropped again Tuesday, continuing their downward trend from last week. Fundamentals still suggest weakness in demand and thereby weaker prices for the livestock complex until such time as Labor Day buying picks up from higher demand, typically in early August. Beef cutouts have continued to slide this week in accordance the lower demand. August cattle futures dropped 1.825 cents to 148.05 cents/pound Tuesday, while December futures lost 1.40 cents to 151.90. Meanwhile, August feeder cattle futures plunged 4.50 cents to 214.57 cents/pound, and November feeders slid 4.42 cents to 210.45.

Lean hog futures traded higher Tuesday presumably on follow-through buying on sentiments from last Friday’s Hogs and Pigs report. In addition to the tightening of supplies in the coming months, implied by the report, one has to wonder how the surge in feedgrain costs will impact hog futures and perhaps was a factor in the lift in lean hogs yesterday. The USDA bullish themes presented yesterday may give hogs continued support this week as producers take closer look at their balance sheets. August hog futures gained 2.675 cents to 74.45 cents/pound Tuesday, while December gained 1.32 cents to 64.30.